One of the best times to purchase things is when it is on sale wherein normally huge discounts are offered. For example, Alibaba, with its Singles Day, Black Friday in US and Diwali Sale in India. Similarly, the best time to purchase shares is when they are on sale. Different crisis (Think Financial Crisis of 2008, Current Health crisis due to Covid 19 Pandemic, Liquidity crisis of NBFCs) similarly offer great sale in Equities. On the other hand, Worst time to buy Equity is during Bull run in Share Market because of all-roundoptimism and good times.
Unfortunately, most retail investors do the opposite for their equity, they invest heavily in good times and stop/Withdraw investments in crisis. This is double whammy for them and leads them to be satisfied with equity losses and investing most of their long erm savings in debt instruments offering lower returns.
Nityanand Jha, Assistant Professor, Unitedworld School of Law (UWSL)
Disclaimer: The opinions / views expressed in this article are solely of the author in his / her individual capacity. They do not purport to reflect the opinions and/or views of the College and/or University or its members.