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

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