Dear Blog Members,
We have seen very severe correction in small and mid cap stocks in last two months. It has taken really very tough test of our patience. Several blog members were very nervous and asking about 20 -30% correction in total portfolio or 30 -40% correction specific stocks which has triggered 30% stop loss as mentioned in our previous post on May 6, 2018
Review of Investment Strategy
https://dolly-bestpicks.blogspot.com/2018/05/review-of-investment-strategy.html
In fact we have gone with 30% stop loss strategy to protect our principal investment in case of extreme correction but none of the past 3 calendar year portfolios have breached the given limit. Recent 2018 suggested stocks like Nitin Spinners, Ganesh Housing and Sintex Plastic corrected more than 30% from suggested price. It is not only our blog suggested stocks but complete small and mid cap sector corrected beyond expectation. We are in much better shape if we look at the below statistic of 4000 small and mid cap listed stocks
Around 800 stocks corrected more than 70%
Around 1500 stocks corrected more than 50%
Around 1500 stocks corrected more than 40%
Around 150 stocks corrected in between 20 - 40%
Around 50% of BSE 500 index stocks had corrected in excess of 50%.
Even though yesterday Sensex closed at all-time highs 37336 points but thousands of stocks are still trading at very low price. It is one of the best long-term value buying opportunity available in last 5 years.
Next stock will be posted on 03 August 2018 (Friday after market hours).
So far Q1 results and economic data are very encouraging that our economy is growing at good pace. Sooner or later our stocks are going to make very strong recovery. Need to stay invested with full confidence in yourself, in stock market and in our economy.
