How To Grow Your Investment During Quarantine !
Earlier this week I wrote about the 7 Best Tools for Decision Making during COVID-19 disruption . F or Credit Controller .
The Today from, The ' s selection of selection of concepts are for the average person, for trying to to Long-term, value The from, The investing in the market, or take more control over his or her Funds. Sound So Simple Right? These ideas, tips, and topics should be a good primer for your stock market education. They Aren ' t all you need to know, and won ' t guarantee has the being has being the success, but they ' re stands for stands for a good for the opinion for the real for any investor.
Now, Shall I Give my opinion on the Real Economy ? Simply give me an answer- “is now the Time to buy stocks? Or "is now the time to exit the stock market completely?" Don't get confusions about this market rally. You will see more examples of that in this post, the people who typically see their financial futures damaged in FY 2020 . "Will we see further downside or volatility in the stock market this year?"
The crash had seen the earlier 60 to index a lose from, The of the .9 % of its value The. I investors now have filled the entire 2008 Bear Market into a big fall & a V-shape recovery. V-shape recovery will take almost 10 months to play out, so we had completed only 2 months of the rally. A nd Bigger losses than just riding the 65% down markets. I f the worst part of the market is over, so please think twice for your National & International economy . I think more portion of market fall is pending. Please see a lot of pain ahead for a country like India. The real problems are awaiting ahead exactly the same happened in 2008 rally. So basically what fell was the Infra & Manufacturing create great recession (& Yes - you do not want to be in even work in those industries), due to unemployment bank defaulters increases , EMI getting a bounce, SIP 's are getting canceled because people do not have their salary check , Inflation & GDP, corruption and (Since there is no cricket fever -IPL, T-20 and Olympic games this time, No new Disney Netflix renewal, No new box office collection) . Those are real problems that are not going to get solved by a 3000 point Nifty rally. The Economy will through you a curveball .. Investors are worried about how big the cut will be this time and how they can protect their finances. If you follow the principles outlined below, you should be able toSafal Niveshk through this “ Kabhi Kushi Kabhie Gham ” phase.
How Will the Covid-19 Pandemic end? Have you got an Answer?
The financial year 2020 is already the most volatile for Indian stocks in 10 years as the novel coronavirus outbreak threatens to cripple a slowing economy. We have been through wars, Terrorist attacks (The attacks of 26/11) , inflation, stagflation, deflation, SARS, Ebola, Aids, the Heaviest monsoon, Article of 370, Maharashtra Legislative Assembly election 2019; the list goes on. There are decades where nothing happens, and there is a year where decades happen. Through all of that, people suffered: as a society, we always pulled through. This time should not be different. But do you think 7600 will act as a big base for the market because that is the point from markets that have come back? Do you expect markets not to go further 30% down there? If you try bottom fishing-chances are you will burn your fingers badly. An investor is minus It ' s selection of dream to identify the time when When the stock market is minus about to, and hit the bottom of its downturn phase. Markets may come back.
Pharma Sector is all doing phenomenally well . Yes! So we have a lot of pharma in our portfolios - Cipla, Sun Pharma, Dr. Reddy, ' s selection of, Lupin, Alkem, Torrent as pharma & more . " Will we see extreme pharma stock market volatility this year? " Or " Is now the time to exit from the Pharma stock market completely? " " Or Hold position! " . A Covid-19has created a massive impact on the share market. Investors are thinking that they should sell all their equity and put leftover money in the bank. Few of them want to hold their investments. So I do not see the Indians thinking any different from what is being played out elsewhere in the world as well. Really will continue this big global rally in pharmaceuticals.
For the first time in a decade, when the news of the world turns negative, Indian investors are witnessing a dramatic drop in the prices of some of your most loved companies' stocks. Of course, that means the Sensex index has tanked 35% from its February peak. So in March also, markets were not looking good, they continued to be bad In April 2020. We were at the end of April itself and I blogged about How To support COVID-Affected Customers and reduce late payment . So we are really riding this rally, Remember 2008 again a good case in our case study. Share Market exhibited prolonged weakness even after 2000 bear run but gained sharplyafter the 2008 sell-off . " Be fearful when others are greedy and greedy when others are fearful "
FY
|
2000
|
2008
|
Start date:
|
11 Feb 2000
|
8 Jan 2008
|
End date:
|
18 Oct 2000
|
9 Mar 2009
|
Decline:
|
-39.4%
|
-60.9%
|
No. of trading days:
|
171
|
286
|
The above data indicate that How one of the richest men in the world (Sir Warren Buffet ) has profited heavily from buying when everyone else is running for the exits. There's no reason to think this time is different.
Why should long-term investors even care about uptrends and downtrends?
Under the current market scenario where the stock market is falling, here are 7 best tools for Decision making during Covid-19 disruption (LOCKDOWN 2.0) , that stock market investor can do.
I. #Don’t try to catch market bottom _ (Buy Low and Sell on High)
Sounds so simple right?
It’s an investor’s dream to identify the time when the share market is about to hit the bottom of its downturn phase. First & Foremost, only idiots will think about Bear/Bull Market. As I have always said, I play both sides of the spectrum and I like to believe that you cannot just be one trick. So long-term survival depends on playing both side trade. You may not able to capture the wing in its entirety, but will avoid getting whipsawed by fool rally. We are not feeling bad 🙈about it. There are facts that are not mutually exclusive: The current bear market will end and over almost any long term horizon share has proven to be beneficial investments that generally grind higher.
Sounds so simple right?
It’s an investor’s dream to identify the time when the share market is about to hit the bottom of its downturn phase. First & Foremost, only idiots will think about Bear/Bull Market. As I have always said, I play both sides of the spectrum and I like to believe that you cannot just be one trick. So long-term survival depends on playing both side trade. You may not able to capture the wing in its entirety, but will avoid getting whipsawed by fool rally. We are not feeling bad 🙈about it. There are facts that are not mutually exclusive: The current bear market will end and over almost any long term horizon share has proven to be beneficial investments that generally grind higher.
II. SC.R.C. (#Stay Calm, #Relax & #Cool) Don’t Review funds now
First, Don’t get panic during COVID-19 disruption, Stay Calm, Relax & Cool, and do nothing😐. If you find yourself looking at your portfolio value daily, then may you lose portfolio shine ever, please stop now. The share market goes up and down. due to volatility -you will be Finding your portfolio take a knock every day will lead you to question your investing choices. Avoid reviewing your portfolio at this point so as not to form a misguided opinion. Do not exit for lack of return, but if you hold stocks for the longer duration you are likely to recover and get better returns. Stay Cool🙏.
First, Don’t get panic during COVID-19 disruption, Stay Calm, Relax & Cool, and do nothing😐. If you find yourself looking at your portfolio value daily, then may you lose portfolio shine ever, please stop now. The share market goes up and down. due to volatility -you will be Finding your portfolio take a knock every day will lead you to question your investing choices. Avoid reviewing your portfolio at this point so as not to form a misguided opinion. Do not exit for lack of return, but if you hold stocks for the longer duration you are likely to recover and get better returns. Stay Cool🙏.
III. #long term Goals
However, if you are only years away from retirement or otherwise need to draw money within the next few years, doing nothing would be harmful. It means you are willing to accept all the risks of the market at a critical juncture.
Equity markets can take years to fully recover. Keep any money you need in the next five years out of the stock markets. Better opportunities come when a stock or sector is dismissed by the market and languishes despite steady economic results that will produce a long stream of profits.
However, if you are only years away from retirement or otherwise need to draw money within the next few years, doing nothing would be harmful. It means you are willing to accept all the risks of the market at a critical juncture.
Equity markets can take years to fully recover. Keep any money you need in the next five years out of the stock markets. Better opportunities come when a stock or sector is dismissed by the market and languishes despite steady economic results that will produce a long stream of profits.
IV. #Dividends - Learn from Real Friends
Dividend-paying stocks aren’t immune from declines, but they do offer a degree of insulation that others don’t. A word of warming though-rich dividends that look too good to last often don’t. Dividends, Not price appreciation. The constant reinvestment of the capital gains produces a compounding Effect so you earn gains on your gains. This is the process that has made Warren Buffett an investment icon. WoW! 💤
Dividend-paying stocks aren’t immune from declines, but they do offer a degree of insulation that others don’t. A word of warming though-rich dividends that look too good to last often don’t. Dividends, Not price appreciation. The constant reinvestment of the capital gains produces a compounding Effect so you earn gains on your gains. This is the process that has made Warren Buffett an investment icon. WoW! 💤
V. #Share Market #Psychology - Familiar with #Filings
While some investors might think they have a Sixth Sense for finding good companies, the rest of us have to do our homework. Some may try to reduce risk by spreading their money across multiple companies, sectors, and asset classes. Sure, Some may go 100% averaging. This may help you temporarily arrest the downside and cushion your portfolio. But overdoing it will prevent you from gaining meaningfully when the market recovers. Markets tend to move in cycles. Bear Markets follow Bulls and vice versa. When everyone expects the worst, that’s usually about the time markets turn around. So please do not withdraw from equity thinking that when the markets start to recover you will put it back. Realy it is very difficult for someone to predict a peak.
While some investors might think they have a Sixth Sense for finding good companies, the rest of us have to do our homework. Some may try to reduce risk by spreading their money across multiple companies, sectors, and asset classes. Sure, Some may go 100% averaging. This may help you temporarily arrest the downside and cushion your portfolio. But overdoing it will prevent you from gaining meaningfully when the market recovers. Markets tend to move in cycles. Bear Markets follow Bulls and vice versa. When everyone expects the worst, that’s usually about the time markets turn around. So please do not withdraw from equity thinking that when the markets start to recover you will put it back. Realy it is very difficult for someone to predict a peak.
VI. Have you surplus money? Then Invest!
When the stock market is falling 💤💤many people think about making an investment. Investing money when the market is down is a very good option. However, make sure that you select fundamentally strong stock for the investment. The company where you are investing money should be cash-rich with a lot of working capital.
As it is very risky to make an investment during the stock market crash. It would suggest that invest only if you have surplus money in hand and you are ready for losing money.
When the stock market is falling 💤💤many people think about making an investment. Investing money when the market is down is a very good option. However, make sure that you select fundamentally strong stock for the investment. The company where you are investing money should be cash-rich with a lot of working capital.
As it is very risky to make an investment during the stock market crash. It would suggest that invest only if you have surplus money in hand and you are ready for losing money.
VII. Avoid Bulk Buying in One-Shot!
can you differentiate between the decline and recovery? If by chance you want to invest money in the stock market when the market is falling, avoid investing lump sum money in one shot. We cannot predict the stock market it may further go down. So, always prefer a 25% SIP option from your budget and never invest your money in the market at single GO.
can you differentiate between the decline and recovery? If by chance you want to invest money in the stock market when the market is falling, avoid investing lump sum money in one shot. We cannot predict the stock market it may further go down. So, always prefer a 25% SIP option from your budget and never invest your money in the market at single GO.
So which approach is correct? What investor should do? Well, I don’t guarantee that you will get answers to your all questions here. But, I assure that you will be in a better position to make a decision about what to do in current stock market conditions.
Please share your opinion in the comment section given below.
“Alone We can do So Little step; Together We Can do So Much. So let’s start your journey for Financial Makeover.”
Yes, You don’t have to do it alone. Working with a Financial Planner, at the very least, can help make all of this financial stuff less stressful. In all likelihood, having a well thought out road map to reach all of your financial goals will help you get there faster and easier. If you don’t know where you are going, how will you know when you have arrived? Once this coronavirus lockdown has passed, get out and enjoy your life. Your investments should be just fine without your looking at them twenty times per day.
What’s really driving up the market on 28 April 2020?
Most active stocks in value terms
RIL (Rs 5096.35 crore), Bajaj Finance (Rs 3151.90 crore), IndusInd Bank (Rs 2714.75 crore), Axis Bank (Rs 1958.57 crore), HDFC Bank (Rs 1368.79 crore), HDFC (Rs 1283.10 crore), ICICI Bank (Rs 1175.40 crore), SBI (Rs 909.11 crore), Kotak Bank (Rs 884.49 crore) and RBL Bank Ltd. (Rs 729.43 crore) were among the most active stocks on Dalal Street on Tuesday in value terms. Higher activity on a counter in value terms can help identify the counters with the highest trading turnovers in the day.
RIL (Rs 5096.35 crore), Bajaj Finance (Rs 3151.90 crore), IndusInd Bank (Rs 2714.75 crore), Axis Bank (Rs 1958.57 crore), HDFC Bank (Rs 1368.79 crore), HDFC (Rs 1283.10 crore), ICICI Bank (Rs 1175.40 crore), SBI (Rs 909.11 crore), Kotak Bank (Rs 884.49 crore) and RBL Bank Ltd. (Rs 729.43 crore) were among the most active stocks on Dalal Street on Tuesday in value terms. Higher activity on a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Shares traded: 30.34 crores), IndusInd Bank (Shares traded: 6.05 crore), RBL Bank Ltd. (Shares traded: 5.87 crores), SBI (Shares traded: 4.96 crores), Axis Bank (Shares traded: 4.39 crore), RIL (Shares traded: 3.59 crore), Tata Motors (Shares traded: 3.48 crore), Vedanta (Shares traded: 3.35 crore), IDFC First Bank Ltd. (Shares traded: 3.31 crore) and ICICI Bank (Shares traded: 3.29 crore) were among the most traded stocks in the session.
Vodafone Idea (Shares traded: 30.34 crores), IndusInd Bank (Shares traded: 6.05 crore), RBL Bank Ltd. (Shares traded: 5.87 crores), SBI (Shares traded: 4.96 crores), Axis Bank (Shares traded: 4.39 crore), RIL (Shares traded: 3.59 crore), Tata Motors (Shares traded: 3.48 crore), Vedanta (Shares traded: 3.35 crore), IDFC First Bank Ltd. (Shares traded: 3.31 crore) and ICICI Bank (Shares traded: 3.29 crore) were among the most traded stocks in the session.
Stocks seeing buyers’ interest
Aarti Industries, Ruchi Soya Industries, Laurus Labs, Pfizer, and Ajanta Pharma witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signaling bullish sentiment.
Aarti Industries, Ruchi Soya Industries, Laurus Labs, Pfizer, and Ajanta Pharma witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Tuesday signaling bullish sentiment.
Stocks seeing selling pressure
Chalet Hotels, Schaeffler India, Aditya Birla Fashion, and Rajesh Exports witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signaling bearish sentiment on these counters.
Chalet Hotels, Schaeffler India, Aditya Birla Fashion, and Rajesh Exports witnessed strong selling pressure in Tuesday’s session and hit their 52-week lows, signaling bearish sentiment on these counters.
Sentiment meter favors the bulls
Overall, market breadth remained in favor of bulls. As many as 263 stocks on the BSE 500 index settled the day in green, while 234 settled the day in the red.
Overall, market breadth remained in favor of bulls. As many as 263 stocks on the BSE 500 index settled the day in green, while 234 settled the day in the red.
We hope you found this article useful.
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