Skip to main content

What To Do After Stock Market Crash 2020

should I buy stocks after market crash 2020

What To Do After Stock Market Crash 2020

Hello friends, I hope you all are fine after the market carnage. I hope you all are enjoying the show. I hope that you all are ready to pump your money in the market. No? If no, then I must say you come under the 90% category investors who don’t use market corrections in their favor. 

Well, it’s personal choice to invest or not but for an ideal investor these type of corrections is investing opportunity and you should not miss.

In this post I will discuss about the strategy after this sharp correction in global markets.

Why You Should Not Stop SIP After Stock Market Crash 2020

What exactly happened?

Firstly, India is going through banking crisis. First PMC bank and now YES BANK. These two bank’s failure are big reason for the banking crisis which we are experiencing in the market. 

Thankfully RBI had intervened and saved investor’s and depositor’s confidence. Many people are panicking after the moratorium period, but truly it saved many depositors. But stock market is not kind. You do mistakes, blunders, it will punish you accordingly. 

Once YES BANK share was trading at 400 and now it was trading near 20. This contributed to the fall of market.

Second this is not a joke, but people are making it joke. I seriously urge all of you to not make joke on this. Yes, I am talking about Corona Virus. 

When I think about it, I feel like I am watching any sci-fi movie. People are dying daily. This is the biggest reason of the global market fall. Definitely it had impacted economy. We just have to see how much it had affected.

What to do after stock market correction

First thing you should not do is stopping your SIP. This is the first and common mistakes of investors in these type of circumstances. Stopping your SIP will not help you rather it will decrease your return over period of time. 

If you redeem your investments then definitely you will out of the race of stock market, but you will regret it in future.

Second thing is if you have money start to invest in index funds or ELSS funds. 

Yes, I have saved my money for this type of corrections and I am investing actively in each 4-5% fall in market. You will not get this type of opportunity in next 10 years. So act accordingly.

Should you buy stocks after stock market corrections?

Definitely if you want to invest in stocks then you can, but I don’t prefer this for retail investors. When you invest in SIP you are investing in approximately 50-100 stocks at a time. That is the best strategy. 

If you think you can choose stocks wisely then you can buy. I, personally think that I can choose stock wisely so I have spared some money for individual stocks. But my 80% money will go to ELSS schemes.

So don’t panic. I am not saying market will go up and will not come down. You never know how much down market will be or when it will recover. But as a wise investor you should keep yourself invested in equity market. 

This phase will also pass and then you will see fruitful return.

What’s your comment on this, share with me in comment box?

Thank you


Popular posts from this blog

Success Story Of Colgate, One Of The Bestselling Toothpaste Brand

Success Story Of Colgate, One Of The Bestselling Toothpaste Brand
"It cleans your breath while it cleans your teeth", can you guess whose slogan is this. If you have guessed correct then today I'm going to tell you the success story of one of the best selling toothpaste brands of India i. e. Colgate. It's popularity can be measured by thousands of situations where the term toothpaste is replaced by Colgate in India. Do you know, this brand came into being almost 210 years ago, introduced by Williams Colgate. And initially, this company used to produce soaps, not toothpaste that too in jars and not tubes. So now, let's get back to the beginning of the story. 

Also Read
Success Story Of Haldiram Bujhia
Success Story Of AmulHow Maggie Became Successful?
The founder of Colgate, Willam Colgate was born on 25 Jan 1783 in England. His father was a farmer. But later, they shifted to Maryland in the US where his father along with a friend began to make candles and soaps. Unfo…

What is SIP? It's Advantages and Disadvantages

Hello friends, in this post we are going to discuss about SIP, its advantages and most importantly which no one will say you, its disadvantages.

So imagine what we used to do in 90's when we were kids. People had piggybanks but I personally had a small box where I used to put coins whenever I get money. There was a lot of emotions behind that and specially I used to fight whenever anyone touched my box. Imagine how our grand parents were saving money. The -most common sources were
Fixed Deposits(FD)Recurring Deposits(RD)If I will explain the true meaning of SIP then it will be similar to Recurring Deposits. SIP is modern era's RD. So what does SIP do? In SIP a professional invest money in capital markets on behalf of his/her clients. It's as simple as that. It's as simple as planting a small tree. It is as simple as taking care of your small baby.

Advantages of SIP:-

Safe From Market Fluctuation - One of the most important and remarkable advantage of SIP is, it saves yo…

Inspirational Story Of SONY, The Japanease Giant

Hello friends, today I'm going to discuss one of the most popular Japanese Multinational Corporations - Sony. It is such a famous company that people blindly believe its products by its name. And why not? There is hardly any product that would dissatisfy the customers. When it comes to the sound system, Sony stands out of the crowd. 

Also Read
Successful Story Of BMW
Success Story Of Rolls Royace
Success Story Of Jaguar
According to 2016, Sony is the fifth largest television manufacturing company in the world. The whole world of Sony is divided into various groups like Sony pictures, Sony finance services, Sony Mobile etc. Now let's get to know the success story of Sony from the beginning.

The story started with the World War when Ibuka and Morita two men were following their dreams. Ibuka was running a radio repair shop in Tokyo when he met Morita, 13 yrs younger to Ibuka. Then, both of them decided to start a business. And then taking a loan of 500 dollars, they started Tokyo Tele…