Investment Tips: Thinking of investing in the stock market, then leave the hope of a crash like March 2020. Also, invest in stocks that are more based on the movement of the economy.
Prostitutes should show urgency, but not haste.
Investment Tips: Once again, an outbreak of corona has spread, due to which the possibilities of improvement in the economy are flowing. Fear has spread among investors and they are either investing in safe places or want to invest. New investors are also shying away from investing at this time. If you too are looking for a safe and better investment option for you, then in this article you will tell some tips which are important to keep in mind.
Remember when the lockdown was imposed in the country in March, at that time there was an earthquake in the stock market. On March 24, the Sensex reached the minimum level of 25638, after which it started picking up and on 16 February it reached the level of 52516. Investors who took advantage of this crash have become rich today. During this time, a large number of retail investors also came to the market for the purpose of earning. Matters are again increasing, due to which the pressure on the stock market has increased. In such a situation, if investors are seeing this as an opportunity then it is a good thing, but caution is also needed.
Invest in stocks that run with the economy
Christopher Wood, global head of equity strategy at American investment bank Jefferies Group, says investors should focus on cyclical stocks. These stocks are based to a large extent on the economic movement and are considered good stocks. He says that in these stocks high point and low point comes like a wave. When the stock comes down, you should buy it and it can be sold after the rally. Even if the entry is taken at the wrong time, then there is very little chance of drowning because there are a lot of buyers and sellers. Regarding lockdown, Wood says that Corona in India is spreading very fast in some states for which local lockdowns are being imposed. In such a situation, the scope of lockdown is less in the whole country. Investors will have to find opportunities for themselves here. Only when the stock comes down, do those purchases.
March 2020 Crash Chances Very Low
If you as an investor are once again expecting the crash of March 2020, then it is not possible. Dr Anthony Fauci, an advisor to seven US presidents, said that the virus has recorded many battle victories, but the victory in the war will be vaccine only. Last time the market crashed due to ‘unknown unknown’ situation, but this time the situation is ‘known known’ and victory is certain. The global economy is showing rapid improvement. US job data is improving. China has recorded growth of around 19 percent in the first quarter. In such a situation, improvement in the Indian economy is also certain.
Diversify the portfolio, do not fall behind a stock
Market experts say that there is a glut of liquidity from central banks all over the world. There is a possibility of more liquidity right now, along with the interest rate will also remain low. The economy is also ready to improve. In such a situation, investors should show urgency but not haste. Include individual sectors in the portfolio and do not fall behind any single stock.
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