Master Class By Devina Mehra: What 2024 Taught Us About The Markets?

How to Navigate Markets That Start Strong and Falter Later? Insights from Devina Mehra. 2024 has been a rollercoaster for markets, with a stellar rally in the first half of the year giving way to a downturn in the latter half. Investors who had grown accustomed to steady growth over the past few years have found themselves navigating unfamiliar territory. In this exclusive discussion, Devina Mehra, Founder & CMD of First Global, shares her expert insights on understanding and adapting to such market dynamics. Devina Mehra highlights the importance of managing risk, especially during periods of market corrections. She notes that while the Indian markets have not experienced double-digit corrections in recent years, the current dip of around 10% from the top is a reminder of the inherent volatility in equities. This year has tested both aggressive and conservative investors, as rapid rallies and subsequent pullbacks exposed the perils of high-risk strategies. According to Devina Mehra, the first rule of investing is to focus on capital preservation. Investing is a "loser’s game," she emphasises, meaning that avoiding significant losses is paramount. Only by safeguarding your capital can you position yourself to achieve long-term returns. Data supports this principle, as mutual funds that outperform during downturns often emerge as top performers over extended periods. She also reflects on historical trends, pointing out that markets can go through long stretches of stagnation before delivering meaningful returns. Patience and a disciplined approach are key to navigating these periods. With Nifty up 13% on a year-to-date basis, 2024 may still end in positive territory, marking the ninth consecutive year of gains. However, this performance has come with significant challenges, underscoring the importance of a well-thought-out strategy. As we head into 2025, Devina Mehra advises investors to balance optimism with caution, focus on sectors and stocks with long-term potential, and remain mindful of valuations. Tune in to hear her comprehensive views on the lessons of 2024 and the outlook for the year ahead. Watch this insightful conversation only on Business Today TV.