How deep did the market fall — and how long did investors have to wait?
India’s equity market has witnessed several brutal bear markets over the decades.
1986–88 → -41%
1990–91 → -39%
1992–93 → -54%
1994–96 → -41%
2000–01 → -56%
2004–06 → ~30%
2008–09 → -61%
2010–11 → ~28%
2015–16 → ~23–25%
2020 COVID Crash → -38%
The 2008 Global Financial Crisis remains one of the deepest falls in Sensex history, with the index falling about 61% from its January 2008 peak to the March 2009 low.
But the bigger lesson is not the depth of the fall.
It is what happened next.
Every major bear market was eventually followed by a recovery and a new phase of wealth creation. Historical data also shows that bull markets have generally lasted much longer than the bearish phases.
Markets fall faster than they recover.
But patience is what allows investors to participate in the recovery.
So, when markets are weak, the right question may not be:
“How much more can the market fall?”
It may be:
“Am I financially and psychologically prepared to stay invested until the recovery comes?”
History does not tell us when the next recovery will begin. But it reminds us why long-term investors should not confuse volatility with permanent loss.
Happy Investing!
RaVi
This is not an Investment Recommendation. Fund Wallet is an AMFI registered Distributor of Mutual Funds with registration number ARN-111231. The data collected from the known source and Fund Wallet do not guarantee for the accuracy of the same. Mutual fund investments are subject to Market Risk.
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