Will there be a March 2020 like fall if markets begin to correct?

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What we have seen over the past entire year is a fabulous rally and there are no two thoughts about it. From the bottom of the market, we are up by anywhere between 110% and 120% or even more. There are three moving parts to this rally; liquidity which has been prominent across in the last one and a half years right from the foreign investors to domestic investors. However last few trading sessions are giving some early signs of a correction. Vivek Mashrani of TechnoFunda Investing spoke to Money9 on whether we can see a deeper fall in markets.

“Usually whenever we see heightened activity among retail investors and frenzy in the IPO markets, the secondary markets tend to correct. We are getting similar signals right now, however even if we see a fall it will be seen as a healthy correction”, he said.

While he says these early signs but how much of a fall will we see cannot be guessed, though he does believe the best way to deal with such sharp downside moved on markets is to be ready with a list of stocks you want to invest in at lower valuations.