After witnessing substantial falls in good, stable stocks like Bharti & SBI (Almost 10% in 2 days), it occurred to me that what would happen if suddenly, the markets decide to correct? My first reaction was that I would start picking up good stocks.
But what actually happens is that when the markets fall, a large number of stocks start appearing on the buying screen. And because one is spoilt of choices, it becomes very difficult to choose among so many good stocks available at cheap prices. I faced a similar situation in early 2008 when all indices and stocks were falling like there was no tomorrow. But I was lucky to make some money during that period.
So how to be prepared for such falls?
The answer is to have a Stock Watchlist.
It is always wise to be ready to grab an opportunity rather than allowing opportunity to take us by surprise. A watchlist helps in this case. How? Once you create a watch list of great companies, you can monitor these companies. As share prices fall, sooner or later they will become good investments too (in addition to good companies).
Though we do follow a number of stocks mentioned in our Stocks We Stalk section, below is a list of stock which we would be delighted to buy in case market corrects and these stocks are available at lower prices –
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| Stocks to buy during market corrections |
So now we know which stocks we want to buy in case markets correct. So what should we do now? Pray for a major correction, what else? 🙂
I JUST WANT TO REPLACE NOVARTIS WITH DIVIS LAB/STRIDE ACROLAB.
@Soumyajit Dasgupta
Interesting picks Soumyajit.
What are the other stocks you would buy in a correction?
tata motors good it is also in my portfolio.10% return sure in 1 month/ 2week from 272(as on 8/10/12).we can see tata motors 300+ with in diwali(by end of nov,12). But my current bet on auto space is Mahindra & Mahindra(M&M).M&M concentrate on SUV segment recently and price is very very competitive. My sense about M&M is By MARCH,13 TARGET-1150.