In fact, everyone loves to talk about it. Even those with no money invested in the market will have an opinion about the crash.
The media dutifully does its part. Headlines speak of ₹‘X’ lakh crore in wealth, wiped out in a day.
Most Indians who have never seen even one crore in their entire lives, wonder how so much money can be ‘lost’ so fast.
A market crash or its evil big brother, ‘the bear market’, create an aura of horror in the minds of investors and traders alike. Many have big money at stake when the ‘bear’ comes calling. Most never had the appetite to take a big loss in the first place.
And if they didn’t sell in time, their losses are usually so severe, that they’re left shell shocked. Sad stories of people committing suicide due to these losses find their way into the news.
But in all the doom and gloom, what can we learn? How can we use the experience and knowledge gained in these bad times, to help us in our wealth building journey?
Let’s look at what happened during the last 4 major market meltdowns and the critical lessons we should learn from them…
The Harshad Mehta Crash
The shock suffered by first time Indian investors was so great that many never returned to the market.
When the shocking scale of Mehta’s manipulation came to light, the market crashed 40%. Never before had the Indian stock market…