In last 3-4 days you all must have come across many posts and memes on various social media platforms that concluded and mentioned last Friday as a Black Friday
It actually was not the case. Yes it wasn’t and it isn’t.
All of you must be thinking #Why?#
Because LOOK at Percentage ( % ) of the fall on Friday. It is not even a 3%; it was just 2.91%.
The NIFTY 50 index had risen from 7511 to 18600 levels. So the basis for Percentage Calculations (i.e. index value) has more than doubled in last 22 months since April 2020.
Now let’s assume that before starting Friday’s session Nifty Index value was 12000 then 3% would have reflected only 360 points and If it was @ 8000 then 3% fall would have reflected only 240 odd points.
So ultimately representation in points is going to get bigger from here-on as the index value is going to get bigger and bigger in future.
Please remember that in a single day a 2-3% movement is very much normal thing. It was there in the past and will happen in future.
So don’t get carried away or panic by such posts. Just focus on percentage & not on points.
And do remember Systematic Investment will always give best returns in such scenarios.
You must be thinking how?
That, we will discuss in our next post. Watch out this space for next articles and more information.
Be a Disciplined Investor.