{"id":18310,"date":"2020-04-02T12:27:55","date_gmt":"2020-04-02T06:57:55","guid":{"rendered":"https:\/\/www.fundsindia.com\/blog\/?p=18310"},"modified":"2020-04-03T14:59:16","modified_gmt":"2020-04-03T09:29:16","slug":"waiting-for-the-bottom","status":"publish","type":"post","link":"https:\/\/fundsindia.com\/blog\/mf-research\/waiting-for-the-bottom\/18310","title":{"rendered":"Waiting for the Bottom?"},"content":{"rendered":"

Stock markets world over are going through turbulent times. It\u2019s hard to predict where the markets are headed in the coming days let alone in the next few weeks.\u00a0<\/span><\/p>\n

We are surrounded by a spate of negative news – from rising cases of Coronavirus to lock-downs to the risk of job losses, and businesses running out of cash.\u00a0<\/span><\/p>\n

Given the uncertainty around Coronavirus, it\u2019s hard to tell or rather hard to believe when, if at all the situation will turn around. This is despite the unprecedented policy measures announced by governments and central banks globally.\u00a0<\/span><\/p>\n

So, does that mean the markets haven\u2019t bottomed out yet and will fall further? That is impossible to tell.\u00a0<\/span><\/p>\n

Will they start moving up once the news turns positive? It\u2019s likely. Though, there are instances that show that markets don\u2019t always wait for positive news. In the past, markets have started moving up even as the news remained largely dismal.\u00a0<\/span><\/p>\n

Investors who would have waited for the news to turn positive would have been disappointed in hindsight.<\/span>\u00a0<\/b><\/p>\n

Let\u2019s go back in time and see how it was during crises – when the markets fell and bottomed out (and then started recovering) without us even <\/b>realizing<\/b><\/span>\u00a0it. All this happened while the news flow (see the news headlines below the charts) was still negative.\u00a0<\/b><\/span><\/p>\n

Demonetization – Nov 2016<\/b><\/h4>\n

What happened?<\/b><\/p>\n