I had published an article on 1st Jan 2018: “Time to exit equity market and book profits” the markets have started correcting and this might be the Crash that has just started. Only time will tell. Now is the time to identify which stocks to buy during Feb 2018 Crash / Correction.
I have sold most of my holdings which are high gain stocks and high gain mutual funds by end of Jan-2018.
I am still holding few stocks that have not appreciated much. So selling them was not a good idea, as the returns would be minimum. Moreover these were potentially good companies, such as Apollo Tyres, M & M etc. I held them as I wouldn’t gain much if I sold them, and moreover It would be good idea to buy more of same stock when the price dropped for a better overall gain, over long term.
Coming to Which stocks to buy during Feb 2018 Crash / Correction: I’ve bought shares of some of my shortlisted companies such as, Kitex(@225.4)[I’ve exited this stock at 114.7 after reading this post , though there are comments countering the views, there is high possibility that one may loose all the investment], Avanti Feeds(@2287.7)[The share price has been falling since and I’m buying at dips], Motherson Sumi(@325.4)[The share price has been falling since and I’m buying at dips], as they are available at discounted price at present. With a conservative target growth of 15% to 20% CAGR. I’ll continue to accumulate them when the prices fall further, .
I have few more companies in my wishlist, which have not yet reached our purchase price. I’ll mention them in another post when the prices drop further and I buy them for my portfolio.
If you couldn’t book your profits during peak price, don’t worry, just hold the stock for longer.
I still feel there is still downside to Market at current levels, and use every dip as buying opportunity.
Don’t sell in panic. Instead, keep an eye on your watch-list, and buy them when the price is right.
updated this post on : 7th July 2018
You may want to have a look at model ingenious portfolio, for more insights into different stocks.