SMC Global Securities Limited

4️⃣The Liquidity Trap No One Talks About Small-cap stocks are easy to buy in a bull run but hard to exit in a crash 🚨Warning: If the fall continues, liquidity will dry up, and selling will become difficult. Already, fund managers are struggling to exit positions. https://t.co/fipRXrCpSj

And that’s a wrap! 💬Are you holding or selling your small & mid-cap funds? Drop your thoughts below! Retweet to help others navigate this market downturn! https://t.co/D2nQNeislT

🚨You survived 2020! But will you survive this market correction? Many Investors are watching their portfolios tumble down daily, with: 🔻Small caps down 26.3% 🔻Mid caps down 22% 🔻Liquidity is vanishing So, should you sell all your investments in small-cap & mid-cap mutual… https://t.co/d5Cg1K8jFB

8️⃣Final Verdict? This is NOT the time to panic, but it’s a time for caution. If history is any guide, those who stay invested long-term win. If you have a short-term view, reduce risk NOW. 📌Invest wisely. Stay informed! https://t.co/FCknKHlzdK

6️⃣Should You Sell Now? 🔹If you need money in 3-5 years → Reduce exposure NOW 🔹If you’re overexposed (40%+ in mid/small caps) → Trim holdings 🔹If you have an 8+ year horizon → Hold & ride out the storm https://t.co/Ps3BigSfSp

7️⃣What Should You Do Next? 📌Diversify into large caps → They could outperform by 15-30% 📌Avoid fresh lumpsum in small/mid caps 📌SIPs in quality funds are still okay (7+ years = best results) 📌Stick to your asset allocation https://t.co/kVCual12f2

2️⃣Valuations Are Still High 📉Mid caps saw a 14% earnings CAGR in 5 years, but stock prices surged 28% 📉Small caps had 21% earnings growth, yet prices jumped 27% This overvaluation is now getting corrected. But is there more pain ahead? https://t.co/xXit6VTUSc

3️⃣Market History Says This is Normal Small & mid caps have always been volatile: 🔹Mid caps have been down 10% or more from their peak 49% of the time 🔹Small caps? 64% of the time 🔹Severe crashes (-30% or more) happen every 8-10 years Investors who panic always lose out… https://t.co/fC93fQuiuv

1️⃣The Sell-Off is Brutal 🔻Nifty 50 has fallen 14% since Sep 2024 🔻Mid & small caps are in a bear market (down over 20% from the peak) 🔻Investors are panicking as foreign capital flees But is this the start of a bigger crash? https://t.co/BCKNuxDgT8 https://t.co/vmBu8zdcbr