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Here’s how Jim Walker, who predicted the 2008 stock market meltdown, might have simply “agreed” with Nithin Kamath regarding “stock market Gyaan”.
Similar to Nithin Kamath, Walker batted for a long-term investment approach.
In February, the Indian stock markets experienced a sharp downturn, with the benchmark Sensex plunging over 4,000 points. The month-long market turmoil wiped out more than Rs 40 lakh crore in market capitalisation for companies listed on the BSE, while the Nifty 50 recorded its longest losing streak since its inception in 1996.
The persistent decline has left retail investors anxious. Addressing the situation on X (formerly Twitter), Nithin Kamath, founder and CEO of Zerodha, called the downturn “the first real market correction” since the Covid-19 pandemic.
“Markets are cyclical, and given the sharp rise since late 2020, this fall was inevitable,” Kamath wrote, urging investors to remain steady with their SIP (Systematic Investment Plan) contributions despite the prevailing negativity.
He further noted, “I don’t know how accurate the data is, but it seems like more investors are stopping their SIPs. This is the wrong approach. SIPs help you average your investments across different market cycles.”
For investors who started investing after the pandemic, this is the first real market correction. Markets are cyclical, and given the way our markets went up from late 2020, this fall was inevitable. I don’t know how good the data is, but it seems like the number of investors… pic.twitter.com/VmxZbdCVTT— Nithin Kamath (@Nithin0dha) March 3, 2025
Alethia Capital’s eminent economist Jim Walker, who notably predicted the 2008 financial catastrophe, expressed a similar opinion.
During an exclusive interview with ETNow, Walker shared his thoughts on India and the status of the global economy. Walker disagrees with the general assumption that the current market euphoria will lead to a 2008-style crash. He acknowledged a global economic slowdown further in the interview but emphasised that the current situation is very different from what existed before the financial crisis more than a decade ago.
Like Nithin Kamath, Walker advocated for a long-term investment strategy. Walker advised his clients to increase their investments in India in spite of worries over the country’s stock market’s valuation.
“This week, I advised my clients to substantially boost their investments in India. While stock valuations may seem high, I’m confident that robust economic growth will soon validate them through strong corporate earnings,” Walker told ETNow.
Known for his prophetic 2006–07 warning of an impending housing market collapse in the United States, Walker said that the warning signs of danger are less clear nowadays. “The signs were glaring in 2006-07 when we predicted a severe downturn driven by excesses in the property sector; it’s not the same now,” he added.
Walker noted that there aren’t any notable excesses in the housing or financial sectors that could cause a big banking catastrophe right now, unlike in the years preceding 2008. He thinks that even while some regions are seeing excessive asset price inflation and stock market gains, these won’t result in widespread company collapses that might rock the banking system.
