market now offering 10:1 odds

with a 12 % crash the market now offers a 10:1 odds (less that 10 % loss ) on a long term basis.

nse website gives the 5 year daily pe from jan 99 to till date. using that data shows that the nse index has gone below a pe of 12.9 (current pe ) only 10 % of the time.

although this may not hold true going forward , the risk reward is now favourable for a rational and patient investor. with the current risk free rates at 6 % and high ROE , the market is in an attractive zone

Political uncertainity and stock market

The sudden uncertainity has created a buying situation in the stock market. At 14.5 PE the market has started looking attractive.

For fundamental investors, the performance of the companies which continues to be good would matter more in the long term.

Any further drops should be better from buyer's perspective