Multibagger Opportunity: What history tells us on market movement over the last 4 wars?

Viidyes K Totare, MD & CEO at Archers Wealth Management Pvt Ltd explains whether or not investors should be worried about the on-going Ukraine-Russia war. He also highlights the investment opportunity that lies in the market.

He describes the current market scenario by comparing the market situation with the Gulf war Afghanistan crises in the past.

So, how should investors protect themselves, minimize the risk and even make profits even during the fall?

The first is to avoid getting trapped into the mass-market trends and second is to strengthen your portfolio through asset allocation and accumulate safest and highest yielding assets.

In the time of crash there are stocks that plunge, there are stocks that take minor dip and jump as the market settles back, then their handful of stocks that are destined to bring you high profits.

An objective thorough analysis of the economy and investment market will allow you to pick up the early warning alerts and profit-making windfall opportunities.

To help you understand the potential impact of this war on the Indian stock market here’s the synopsis based on previous market crashes

It is observed that after the bull market Nifty usually corrects 30-35% on an average.

Recovery post bottom formation takes about 4-6 months in case of war crisis & around a year or two in case of consequential events.

Analyzing big Bull rallies the past, on average the Nifty has gained approx. 120% - 145% from the previous lows and subsequently corrected by 30 to 35% from its peak.

Current scenario: Nifty has rallied 148% and corrected by 13% from its peak.

Moving forward the market will find direction depending on the war situation and American FED policies.

Gulf War:

 

 

 

Iraq War:

 

 

Crimean Crisis:

 

Afghanistan War:

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)