📉 Nifty has seen declines of >15% multiple times and market recovered quickly during the next 6 months. 🔻 -56% (2008) → 🔼 +62.5% in next 6 months 🔻 -38% (2020) → 🔼 +30.1% in next 6 months 🔻 -27.7% (2001) → 🔼 +13.4% in next 6 months 🔻 -16.7% (2006) → 🔼 +24.1% in next 6 months 🕰️ Where are we now? Since Oct 2024, Nifty is down ~15%, marking another significant correction. 📊 What next? Considering the recent correction which is just -15%, it’s very normal during any bull run to have such declines, during 2004 to 2008 such corrections happened repeatedly. We are nowhere near bear phase, Bear phases are much more brutal. Since more than half of Indian investors are covid batch(who started investing post covid) haven’t seen significant declines, may be that’s why there is too much noise about the current correction. History suggests that major declines have been followed by strong mean reversion. If the downside is faster then recovery is usually much faster, Covid crash was like that. But if the correction is slow and spans over couple of months, then recovery might also take more time to hit all time high again. 2008 Global financial crisis was one such period. It’s better to avoid any leveraged instruments during this period for your investments. Many small cap / micro cap stocks won’t go back to its previous all time high price again, so better don’t burn your hands by averaging down such stocks on every decline. Be safe, Play safe.