Why You should Buy The Dip, Rather Than Getting Freaked Out.

Jun 28, 2020

What i am publishing is the ratio chart of Maruti to Hindunlever every time the bottom in Ratio chart of Maruti to HUL has coincided with bottom in Nifty & overall markets. The simple thought behind why this happens is that Maruti represents discretionary spend where as HUL is consumer staple stocks where you wont cut spending even if economy is doing worse. At bottom ratio represents that pessimism towards discretionary spend has increased compared to absolute necessary spend. historically such a pessimism has resulted in good buying opportunity over next few years. So if you are building portfolio use whatever dip you get in Nifty as an opportunity to buy Good Quality discretionary stocks & even small & midcap stocks.