This is not the first time India is facing pandemic crisis. The result of any kind of crisis is that it directly hits the economy of the country.
This time it is Covid-19, CORONA VIRUS 2019. It has spread around 156 countries and has hit the economy market globally. Precautionary measures are been taken, but every investor is wondering till how much time this will be there.
Current Situation in the Market
Stock markets witnessed a bloodbath with Sensex and Nifty going down to multi-month lows; investors are struggling to find the right stocks for investing. There is a bearish sentiment in the market and hence, it is important that the investors do not get hassled at the moment, and wait for the right opportunity so that their capital does not get eroded.
The forced halt in stock-market activity, driven by corona virus outbreak and a geopolitical fight over oil, has proved wrong all algorithms of professional traders and investors.
A pause is helpful for an average investor, who can either be scared and make losses or sit tight in the present situation. It is suggested to contemplate and take a deep breath and then ask yourself, “Is there any change in your long-term goals?” If the answer is no, one should ignore the market volatility.
Considering the current scenario, investors can go for index investing as they are likely to give more gains and are more sustainable and investment-worthy. The other option for the investors is to park their funds as the markets are down, and when the markets start moving upward they can identify momentum stocks and invest in them.
Surviving the Corona virus
Stock Market Correction
What should investors
be doing during the corona virus stock market correction? In a stock
market correction and especially a bear market, even leading stocks crumble.
But stay
engaged. Follow the market trend. Look for a follow-through day to confirm a new
stock market rally. A follow-through day occurs a few days into a rally attempt
with a powerful price gain on one or more of the major indexes in higher volume
than the prior session.
Not every
follow-through day works, especially in a bear market, so investors don’t need
to rush in. But they do need to be ready.
Build watch lists of stocks that are holding up relatively well. Look for stocks with strong fundamentals that boast rising relative strength lines, reflecting their outperformance. These stocks are likely to lead the next stock market rally whenever that comes.
The markets across the globe will take a longer period of time to start reversing the losses and moving back up. However, just because of one week or month of price war, it does not mean that this will be a permanent situation.
Indices represent several sectors and industries of the country and when the markets will come out of their fear psychosis, we will get enough time to identify the stocks in momentum.
Disclaimer: All the views in the video are personal of the author not attributing to any one
