How Far Could The Stock Market Ultimately Fall?

How Far Could The Stock Market Ultimately Fall?

VALUEPICK wrote:We will see  seesaw pattern in the short run. Later they will peak during next 12 months to 18 months. Then they will have bear market. Despite sell off some boring stocks will maintain their uptrend. Global stock markets should reach their peak this year or next year.  In the case of Sri-Lankan market, still it didn't have broader bull market. 

After this tsunami sell off, we will see tsunami of capital” coming out of other sources into the stock market. That is how stock market works. Money goes out and then money comes in.

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This is the time to  fill basket with non cyclical the safest sectors such as food and health care stocks etc. Look at performance of chicken food related stocks in the USA and China etc. They are outperforming broader market.  Soon they will pass their 52 weeks high.

Senior Citizen wrote:

VALUEPICK wrote:We will see  seesaw pattern in the short run. Later they will peak during next 12 months to 18 months. Then they will have bear market. Despite sell off some boring stocks will maintain their uptrend. Global stock markets should reach their peak this year or next year.  In the case of Sri-Lankan market, still it didn't have broader bull market. 

After this tsunami sell off, we will see tsunami of capital” coming out of other sources into the stock market. That is how stock market works. Money goes out and then money comes in.

.

This is the time to  fill basket with non cyclical the safest sectors such as food and health care stocks etc. Look at performance of chicken food related stocks in the USA and China etc. They are outperforming broader market.  Soon they will pass their 52 weeks high.

Well said VP,

The FMCG sector is indeed a steady and sure investment during unbearable BEAR periods.

See MEMAS, NEST, SUN, CCS etc.

They shine and prosper at all times.

But investing in the sectors that have seen a sharp decline by > 15% is a definite thing to consider.

VALUEPICK wrote:

Senior Citizen wrote:

VALUEPICK wrote:We will see  seesaw pattern in the short run. Later they will peak during next 12 months to 18 months. Then they will have bear market. Despite sell off some boring stocks will maintain their uptrend. Global stock markets should reach their peak this year or next year.  In the case of Sri-Lankan market, still it didn't have broader bull market. 

After this tsunami sell off, we will see tsunami of capital” coming out of other sources into the stock market. That is how stock market works. Money goes out and then money comes in.

.

This is the time to  fill basket with non cyclical the safest sectors such as food and health care stocks etc. Look at performance of chicken food related stocks in the USA and China etc. They are outperforming broader market.  Soon they will pass their 52 weeks high.

Well said VP,

The FMCG sector is indeed a steady and sure investment during unbearable BEAR periods.

See MEMAS, NEST, SUN, CCS etc.

They shine and prosper at all times.

But investing in the sectors that have seen a sharp decline by > 15% is a definite thing to consider.

 

SC

 

They are kind of rocks to me. You are correct. PMCG sector in Sri-Lanka has lot of potential now.

 

I can remember one time WATA outperformed the weak market. Heavily oversold stocks > 15 should recover first before others. It is normal in any market be Chinese, Japanese or Sri-Lanka. European stocks should rebound strongly today. On CCS I didn’t have reasonable quantity at that time to buy. Finally I ended up with buying another one. Those types of stocks can withstand from any type of tsunami. In global market we see unbelievable tusunami sales.  Those sales create opportunities for others.

 

After two- five and ten year I don’t know where will be their prices. It is better to find out those types of companies in advance. Weak market is ideal for hunting those types of stocks at a bargain prices. If we see fire sales so much better.

 

There are so many theories in markets like falling knife, bottom fishing, over bought and over sold stocks etc. If we had bought stocks such as NEST and CCS without looking those theories our portfolio could have increased by many folds by now.