All long-term investors know that corrections are part of every bull run. But the fact is that when a correction plays out, it is not easy to be rational. At this point of time, both the bulls and bears are placed pretty much at the same levels, though the bias is slightly toward bears. Mind you, we are using the word “slightly”. Reason: We are in the midst of the Q1 earnings season and there are not many positive surprises so far. At this point of time, stick with companies where the quality of the balance sheet is strong and there is little need for further debt.
