Market correction presenting opportunity for long-term investors: Milind Karmarkar
«So, there is uncertainty. I definitely agree. And as you said that there is de-globalisation, there is a tariff threat which is there,» says Milind Karmarkar, Dalal & Broacha.
Last time when we met, there were excesses. There were excesses in the small and the midcaps. There were excesses on the upside, but are there excesses on the downside now?
Milind Karmarkar: So, it is like this. Yes, the market has corrected and normally, whenever the market corrects, it corrects very viciously and that is what has happened. How long it will continue, I really do not know. But do I see upside from here? Yes, I do see an upside. And this is not the end of the bull market, as you say. There is a lot more still going to happen. And as I think Templeton has said, I do not remember, that whenever there is blood on the street and even if it is your own blood, that is the time to buy, so that I think will answer the question.
So, let us first understand that why markets have fallen, then we will talk about whether that is blood or water. So, markets have corrected because of two factors. High valuations and slowdown in earnings. Have valuations corrected enough even after the correction?
Milind Karmarkar: So, let me just give you a parallel to this. Way back 2002 to 2008, we saw markets going up about six-and-a-half times and there were many corrections, 10%, 15%. But the largest correction, which I remember, was in 2006 May when the market dropped almost by 30%. There was no reason, practical, specific reason. People said that
