Markets falling

Markets Falling :

Rajiv had huge debts. Recently he had bagged a huge business order and was expecting to receive a large amount of money, literally a windfall.
He was happy because he knew he would now at last have the money to pay off his creditors and get ride of them from his life.
Off late they had been calling him not only at work but even had visited him at home. They almost seemed threatening during his last interaction.
Once he would receive his due profits, his desire was to pay all his creditors and be at peace.
However fortune abandoned him once again when his debtors (this who owed him money) defaulted.
So he was back to square one having nothing for his creditors ( to whom he owed huge amount of money ).
Now he was petrified.
'What if they, his creditors, use strong arm tactics against him?' Such thoughts started to creep into his mind.
His nervousness coupled with lack of time to think of any alternative made him into a distressed seller.
He needed money immediately and his prospective customers showed little mercy.
He had to sell his RS 20 lac car for 10, his RS 50000 mobile phone for RS 5000 and so on and so forth.
Just because he had to sell his car at a 10 lac discount or his phone at a 45000 discount did not mean those products had been devalued. Their prices had sunk because of Rajiv's situation. Otherwise they were still invaluable.
The same thing happens when markets crash. There are many Rajivs in the market with their own set of problems. Whenever they are forced to sell in the market, buyers take advantage of their predicament and offer less money for high value stocks.
It appears that the stocks have fallen in value but the fall is temporary induced by the collective behaviour of 'Rajiv like' people.
Now because Chinese markets are witnessing a sell off, stakeholders having positions in both markets ( China and India ) are selling off their stocks in India ( like Rajiv sold his car and mobile ) to settle their dues or cover up their losses elsewhere
This is what triggers fall in our market.
Remember that as an investor you have invested in India and not in China or elsewhere. Hence as long as India appears promising one need not worry about issues emerging in other countries although they impact market performance here too.
But these are temporary having actually no long term implication.
If at all, see this moment as an opportunity to buy high value stocks at low prices. It is your chance to strike a bargain with the Rajivs. It is your chance to buy the car and the mobile in this case stocks at throw away prices.