Skip to main content

Market’s Free Fall and Your Investments

Stock markets are down by close to 9% from their highs owing to reasons discussed many times in our communication. Indian Union Budget is just 3 more sessions away. The current downtrend may continue till then and reverse from there if market receives the budget in good spirit.

Or the markets may go for another free fall on the day of budget and then revive after couple of sessions when they will be able to understand the fine lines in the budget. US is not going to raise its interest rates before March and this news have played its major part for the time being. Corona’s latest wave will also peak very soon and you may start moving freely in couple of weeks.

International Strategic Situation - Another major worry is that of international relations where NATO and Russia seems to be at loggerheads over Ukrain. Many strategic experts have paralleled the current situation to that of Cuban missile crisis of 1962. Some Indian experts have also reminded that China may use the situation to advance its position over India like it did in 1962 when the two super powers were busy facing each other.

What we believe that the super powers averted that war in 1962. And as far as China’s chances of aggression are concerned then India is not the same country and China knows it well. They will continue engaging India in proxy war with the help of Pakistan but will not dare a straight conflict.

What should you do – Over last one year we had been advising you booking some profits and move part of your investments to balance advantage funds or debt investments. Now is the time that you start moving your money from these comparatively less volatile investments to pure equity funds. So start investing on all the dips.

Feel free to contact your InvestmentMitra and check what action should be taken on your portfolio. You may also whatsapp your query to 9958447700 or email to info@investmentmitra.com

Happy Investing!

Team InvestmentMitra

Comments

Popular posts from this blog

This Republic Day Write Your Own Financial Constitution

“Constitution is not mere a lawyer’s document, it is a vehicle of life and its spirit is always the spirit of Age” – BR Ambedkar A constitution primarily is a document that details the rights, obligations, privileges, duties and responsibilities of the people living within the corridors of, and leading that country. It details the rule of governance. Without a constitution it will be difficult to live like a civilised society. We would be living like in stone-age where “Might was Right” and jungle raj prevailed all over. Like a country, each individual should also have his or his family’s own financial constitution detailing various financial objectives and the process to achieve those financial objectives, rules that will govern the way its finances will be managed etc. This applies to all individuals without exception and is more popularly known as “Financial Plan”. Like a constitution your financial plan should have a Preamble and different schedules. Preamble -

Time or Timing – What is more important with Sensex @ 64K

  The Stock Market is the device to transfer wealth from the IMPATIENT to the PATIENT. After swinging in a range for almost one and half years, markets breached their previous peaks and are scaling new one now. Markets have risen by almost over 14% in last three months. Major reason for this sudden rise is the return of FIIs to the Indian stock markets following the fact that India is the fastest growing economy and growing over 6% despite covid, global economic slowdown and geo-political tensions. We invest for long term and everyone knows in the long run markets will go up irrespective of intermittent shocks like scams, dot-com bubble, Lehman crisis, covid or banking troubles in USA etc. Following picture depict the journey of Sensex over 40 years since its inception.   Source; www.thenwsmen.co.in The unfortunate part is we are more concerned about the short term movements of the markets. Every time there is sudden rise or fall in them market we are gripped more by fear and l

On Cross Roads

“We cannot truly plan, because we do not understand the future- but this is not necessarily a bad news. We could plan while bearing in mind such limitations. It just take guts.”- Taleb:   Propounder of The Black Swan theory. Pessimism that set in March, still persists in our minds. In fact it has deepened with growing number of Covid cases being reported. The largest question ruling our minds today is - Shall we ever be able to overcome it…………..     and if yes by when and how? Have we ever wondered how have the Indian culture survived for so many thousands of years, how come so many Indians who were transported as labourers to many African and European countries centuries ago are now ruling the roost or how come most of the top 20 firms in the world have Indian heading them and so on……….. The only reason to above and many such questions is our “ Ability to Adapt ”. We are fast learner and very quickly adapt to new situation. Indians enjoys six different weather in a yea

Markets Tumbling, Recovering – What to do??

Markets Tumbling, Recovering – What to do?? "The best time to plant a tree was 20 years ago. The second best time is now." - Chinese proverb. In times like present most people flock towards safety. Most do it because they don’t know how long this doomsday atmosphere will last, some even feeling like there will be No Tomorrow. But hunger for good returns on our investment never ceases. Kin Hubbard satires, "The safest way to double your money is to fold it over and put it in your pocket." On investment and earning good money from them, Warren Buffet – the legendary investor says, "If I buy a farm, I don't know whether there's going to be drought next year, but I know that there are not going to be 20 straight years of drought, and I know there's not going to be 20 straight years of great rainfall." It is a proven fact that no matter what, in long term best returns come from stock markets only. And as Seth Klarman says, “The stock mar

Have You Missed Boarding the Bus

  "The market does not trade upon what everybody knows, but upon what those with the best information can foresee" – William Hamilton Russia-Ukraine conflict had clouded the stock markets worldwide giving speculations to the talks like possibilities of third world war, Russia heading for deep financial crisis, energy crisis looming large over Europe etc. With Russia-Ukraine conflict seems getting settled and much to the pleasure of Russia – the Super Power, this has now become a non-player for the markets until some significant deviation happens from the present stance taken by all major countries of the world. Present is the world of instant. We want everything instant and so are our reactions. In the age of internetted social life, dissemination of information is highly fluid. And over 99% of these netizens have mastered the art of forwarding such information without verifying if it’s a news, noise or manipulated agenda of some interested parties.   Most economies in