New Delhi, Feb. 9 -- Warren Buffett famously said: "Be fearful when others are greedy, and greedy when others are fearful." If you were bullish in September 2024, there is no reason to be bearish now just because of the correction.

A correction was due any which way, as valuations were stretched. Whichever parameter you take for valuation-price-to-earnings ratio (PE), price-to-book value ratio or market capitalization to gross domestic product (GDP)-were overvalued.

The gauge for this is the current reading vis-a-vis the long-term average and how far the current level is. Valuations were more than one standard deviation away from the long-term average. There had to be a trigger for the correction.

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