Synopsis
Consider this. A company has implemented a restructuring plan and the numbers are showing a positive impact. So, should a decline in the stock price in a volatile phase be taken as an opportunity? The answer is yes, but with some caveats. First, don’t just jump in and buy. Identify the stock, decide on your total exposure, and buy when a panic phase drives the price down. Also, don’t use money you may need in the near term. Why? Because (though the probability of it happening is low) if a time-wise correction is sparked for any global or domestic reason, then all stocks will underperform.
When markets are up and down and bears are all around, there are a couple of ways of dealing with the volatility. One is to just sit it out and wait for things to improve. The problem with this approach is that by the time one figures out that things have improved, stock prices would have already moved up. The other way to deal with volatility is to look at the underlying business and management of the company you are interested in. If things
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