{"id":3136,"date":"2019-07-11T02:21:52","date_gmt":"2019-07-11T02:21:52","guid":{"rendered":"http:\/\/blog.kuvera.in\/?p=3136"},"modified":"2019-07-11T02:21:52","modified_gmt":"2019-07-11T02:21:52","slug":"what-to-do-when-markets-fall-2-in-a-day","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/what-to-do-when-markets-fall-2-in-a-day\/","title":{"rendered":"What to do when markets fall 2% in a day?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69daf04a131be\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69daf04a131be\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/what-to-do-when-markets-fall-2-in-a-day\/#What_to_do_when_markets_fall_2_in_a_day\" title=\"What to do when markets fall 2% in a day?\">What to do when markets fall 2% in a day?<\/a><ul class='ez-toc-list-level-5'><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/what-to-do-when-markets-fall-2-in-a-day\/#There_are_two_clear_takeaways_from_the_above\" title=\"There are two clear takeaways from the above\">There are two clear takeaways from the above<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h4><span class=\"ez-toc-section\" id=\"What_to_do_when_markets_fall_2_in_a_day\"><\/span>What to do when markets fall 2% in a day?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>This week started with a wobble. The Nifty index was down -2.14% on Monday. It might seem like a big down move, but such market moves are more common than\u00a0one would expect. Since 1991, the Nifty 50 Index has\u00a0seen quite a few\u00a0declines of -2% or more in a day. On average, the index has a -2% down move every 15 trading days. Some years see more -2% down days than the others, but just because they have been infrequent in the recent past does not mean we become comfortable that it cannot happen.<\/p>\n<p>The chart below shows the number of trading days every year that the index lost\u00a0-2% or more.<\/p>\n<p><img loading=\"lazy\" class=\"aligncenter size-full wp-image-3137\" src=\"https:\/\/blog.kuvera.in\/wp-content\/uploads\/2019\/07\/2Moves.png\" alt=\"\" width=\"1036\" height=\"455\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2019\/07\/2Moves.png 1036w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2019\/07\/2Moves-300x132.png 300w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2019\/07\/2Moves-768x337.png 768w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2019\/07\/2Moves-1024x450.png 1024w\" sizes=\"(max-width: 1036px) 100vw, 1036px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>So we had years like 1992, 1998, 2000 and 2008 that saw more than 30 such days where the market fell more than 2%. In 2008, the market fell more than 2% on 61\u00a0trading days &#8211; that is roughly one out of every four trading day.<\/p>\n<p>So how did investors on Kuvera react to this move? As expected our investor base has shown remarkable maturity. We do not see any rush to stop SIPs or to sell and withdraw investments.<\/p>\n<blockquote><p><em>If anything we saw a big <strong>3.2x<\/strong> jump in lump sum investments on Monday over our daily average.\u00a0It is not for nothing that we say Kuvera is where the smart investors are.<\/em><\/p><\/blockquote>\n<h5><span class=\"ez-toc-section\" id=\"There_are_two_clear_takeaways_from_the_above\"><\/span><strong>There are two clear takeaways from the above<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<p>1. Large down moves happen more frequently than we would expect. Just because it hasn&#8217;t\u00a0happened in the recent past is no reason to believe it won&#8217;t happen again.<\/p>\n<p>2. The <a href=\"http:\/\/blog.kuvera.in\/002-stocks-for-the-long-run\/\" target=\"_blank\" rel=\"noopener\">long-run returns<\/a> of the index include such down days. When we say the Index returned 14% since 1991, it includes all of these negative 2% days. We cannot predict when they will happen but if we stay invested through them we will get superior long term returns.<\/p>\n<p><strong>And, as always our long term advice does not change\u00a0<\/strong><\/p>\n<p>1. If you promised yourself you will buy on dips<\/p>\n<p>2. If you promised yourself you will run the SIP for 15 years<\/p>\n<p>This is the time to honour that commitment. Stick to your <a href=\"http:\/\/blog.kuvera.in\/what-makes-a-great-investor\/\" target=\"_blank\" rel=\"noopener\">plan<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit\u00a0<a href=\"https:\/\/www.kuvera.in\/\"><strong>kuvera.in<\/strong><\/a>\u00a0to discover\u00a0<a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\"><strong>Direct Plans<\/strong><\/a>\u00a0and\u00a0<a href=\"https:\/\/kuvera.in\/user\/login\"><strong>start investing today.<\/strong><\/a><\/p>\n<p>#MutualFundSahiHai, #KuveraSabseSahiHai!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What to do when markets fall 2% in a day? This week started with a wobble. The Nifty index was down -2.14% on Monday. It might seem like a big down move, but such market moves are more common than\u00a0one would expect. Since 1991, the Nifty 50 Index has\u00a0seen quite a few\u00a0declines of -2% or [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/what-to-do-when-markets-fall-2-in-a-day\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3138,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[91],"tags":[244,62,247,246,245],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What to do when markets fall 2% in a day? - Kuvera market moves<\/title>\n<meta name=\"description\" content=\"A 2% markets fall might seem like a big down move, but such market moves are more common than\u00a0one would expect. 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