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For investors with a 3-5 year horizon, here is a checklist from Ram Kalyan Medury, Founder and CEO of Jama Wealth, that one should follow while picking stocks in a volatile environment. Ensure stocks have strong ROOTS, i.e. robust balance sheets with low debt. Volatile times might cause fragile companies to collapse. Having low debt helps tide over bad times.

“I do not see any other issue but the rupee going down and the impact on the stock market. FIIs do not like an unstable currency, normally we see outflows on a strong dollar and that we have seen over the last 12 months and we expect FII outflows to continue.”

“The best way to participate in the market is to accumulate at every fall and on larger falls and specifically days when markets are down by 3-4%. We saw that in the previous week where markets were down 5.6% in one week and the next week it recovered almost 3.5%! So, it is kind of a zigzag market. It is very difficult to predict bottoms.”

“The last few days were abuzz that some kind of tax was comingThe market was aware that the spreads are gaining and Reliance will make bumper profits but some of that might go back to the government because there are some talks about windfall tax. So it was not getting factored in the stock price to a large extent.”

Although the two investing strategies might sound the same, in reality they are two different concepts. DCA, or rupee-cost averaging in the Indian context, means investing a fixed amount at regular intervals irrespective of whether the stock prices are going up or down.

“I’ve been hearing about investors losing money sitting in cash, and that cash is trash for as long as I’ve been in this industry,” she said on this week’s episode of “What Goes Up.” “But the reality is that if you have been in cash for the last five years, you’ve essentially outperformed the Bloomberg Aggregate index year-to-date, over one year, three years, and, depending on the day, yes, even five years.”

MicroStrategy will likely need to take a substantial impairment charge when it reports second-quarter results. And for shareholders, the stock tumbled 66% in the quarter ended Thursday, outpacing Bitcoin’s 59% decline.Saylor has downplayed any concerns, sticking to the strategy and adding to his stockpile last quarter as Bitcoin experienced its biggest price drop in more than a decade.

"Unless there is a very large growth opportunity, do not get into that company. When one assembles a portfolio, go for a small portfolio of maybe three, four, five, or seven companies that are available and that is how you structure the portfolio with a number of growth factors. We follow a scientific investing framework."

“While refining companies were enjoying super normal gross refining margins, the stock had responded but not completely priced in the super normal gross refining margins. It was expected that at some point of time, there is always a risk that the government might want to take some part of that super normal profits on them to fund the local fuel subsidy.”

It’s a sharp departure from the previous two years, when the fortunes of the ultra-rich swelled as governments and central banks unleashed unprecedented stimulus measures in the wake of the Covid-19 pandemic, juicing the value of everything from tech companies to cryptocurrencies.