Financial services company Zerodha’s co-founder, Nikhil Kamat, says that investors should not be overly disheartened by the market decline on August 2nd, as there is more theatricality among bears compared to bulls. Kamat conveyed this message in a tweet, emphasizing that one should not lose hope during tough times and should focus on maximizing gains during good times.
“In the bear market, there is more theatricality than in the bull market. If this bull run has been unusually long and the volatility is relatively low, one needs to control their emotions… Everything follows a cycle. Over the past 19 years, this has been the experience. The bottom line is that investors should not lose hope during bad times and should focus on maximizing gains during good times.”
This comment comes in the context of the significant decline in the Indian stock market on August 2nd, as mentioned by this Bengaluru-based serial entrepreneur. Kamat shared his analysis on his official Twitter handle, where he explained that the typical duration of a bull market is around 1 year and 10 months. However, the recent four bull runs have lasted for more than three years.
According to the analysis, the bear market phase is shorter compared to the bull market and often lasts for about six months. The shortest bull market lasted only 50 days. Kamat’s analysis revealed that during the bull market, the average return was 101%, while the bear market witnessed an average decline of 33%.
The tweet further stated, “Usually, longer bull markets result in higher profits. However, such a trend is not seen in the bear market. There is generally no correlation between the duration of the bear market and the intensity of the market decline.”
