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

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