Ashish Kacholia reshared an old gem on Friday, April 11 from his fellow market investor Vijay Kedia, underlining a timeless truth: real wealth is created during bear markets.
As Indian equity markets stage a sharp recovery from a recent slump, Kacholia’s post couldn’t have come at a better time.
Ashish Kacholia in a post on X (earlier Twitter), said, “Gold…my experience is similar,” while sharing an old video from Kedia where he is seen advocating the benefits of investing during bear markets.
On Friday, benchmark indices Sensex and Nifty surged over 2% each, buoyed by news that US President Donald Trump had announced a 90-day pause on tariffs, offering relief to investors rattled by global uncertainty. Prior to this rally, the Indian market had seen steep losses in four out of five sessions following the tariff announcement.
Making Money vs Creating Wealth
Kedia in the video said that whatever people has earned in the stock market, it is by investing during the bear markets. By investing in a bull market, you haven’t created much wealth, he opined.
He stressed his point by saying wealth is created during crisis only, and there is a difference between making money and creating wealth.
Citing examples of previous bear markets like the Lehman Brother crisis, which sparked a global recession or the Covid-19 crash, Kedia said those who who managed to buy shares through grit or portfolio adjustments have earned real money. While these bear markets spelled pain for investors, those who invested also made stellar gains.
For instance, during the 2008 crash, the Sensex dropped from 21,000 to 8,000 but rebounded to its previous high by November 2010—a 162% gain from the bottom.
Similarly, from its March 2020 low of 26,000 during the Covid crash, the Sensex soared past 60,000 by September 2021—a 130% jump, continuing its upward trend until hitting an all-time high of 85,978 in September 2024.
Bear Markets: A Brutal But Honest Teacher
Kedia also believes that a bear market creates a filter as it removes not only froth in the market but also acts as a lesson for investors, especially those who treat the market like a place to make easy money.
People come in the market during bull runs to make easy money and market supports them, Kedia said. Giving an analogy, he said it is like pushing an already running train. “You feel invincible.” But when the bear market hits, that illusion fades fast.
He concludes by saying: “Bhagwan deta hai toh chappar pgaad ke deta hai, leta hai toh thappad mar ke leta hai”. (When God gives, He gives in abundance; when He takes, it’s with a hard slap.)
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
