The markets usually bounce back from the steepest falls within 18 months or even earlier — the latest recovery from the March 2020 lows took eight months. Long-term investors can easily face this drawdown. However, betting on individual stocks, especially with high PE, could be a disaster.
If someone had told you in March 2020 that the market fall of 40% was just a temporary phase and there would be a strong recovery in the next few months, you would have perhaps called it black humour. A ravaging pandemic was killing people and the world had resorted to a shutdown. Economic growth was affected and a revival was far away. It was like we were at war with the Martians. But the market bounced back by more than 100% from its lows and
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