While this was a cause for erosion in wealth; it also provided opportunities to savvy investors to enter at depressed valuations. However , the general feeling of pessimism meant that even people who had money and wanted to invest thought they would wait for markets to fall even furthur so that they could time the bottom.
However, as equity experts we realise it is impossible to time the markets. No one knows when the bottom will be hit. So the best approach when stock prices are depressed is not to stay completely out. It is also not to go all in ( after all there can be a furthur correction!). The answer lies in starting to accumulate to take advantage of attractive valuations yet accumulate slowly so as to cushion yourself from furthur shocks.
That's what we advised investors to do through a campaign that released at the height of pessimism in mid-April 2020. Don't try to time the markets. Accumulate slowly.
The campaign (executed completely in-house using stock footage and visuals) consisted of a TV ad on business news channels and digital/social creatives using metaphors around how market timing is impossible. Care was also taken to stay consistent with the brand personality and proposition ( Think Equity. Think Motilal Oswal)
Have a look at the TV ad https://youtu.be/6SJVlIQeM-Q
And some digital renditions of the same idea
Since the campaign broke on April 24th, the stock markets have bounced back smartly as can be seen in the chart below. Yet we believe that there is probable pain in the future based on stress on corporate earnings due to the listless economy, COVID19 and geopolitical challenges.
Hence while things seem to be relatively stable right now; don't rush in. Just as you cant time the fall , you can't time the rise as well.
So accumulate slowly. Buy Right. Sit Tight
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