5 Quick Things to do in the Market Crash - 2020
5 Quick Things to do in the Market Crash - 2020
The Global Stock Market has risen rapidly from the Crash of March 2020. At the same time, the big question is whether the recessionary economy would recover faster. Most of the Listed Companies in India have reported their Q4FY20 earnings in the past two months.
So, they are prepared to declare the Q1FY21 - quarterly results from the next month. While the Market predicted the economic downturn in advance and it was reacted before the Covid-19 Lock down. However the real Economic numbers are likely to come only on July and August 2020.
Due to the Lengthy lock down, the Country's GDP could contract some and may be more. Inflation, Economic Growth - GDP, Industrial Production and Trade and Fiscal Deficit numbers would impact in the FY2020-21.
The above said will drive the market in the upcoming weeks. Moreover the Global factors are also in the offing. However as a result of Optimism in the Market, it is mounting artificially. The real numbers are essential.
Is the Market getting ready for the Next Crash - Market Crash ?
Instead of thinking about that, be prepared for the next one in 2020 or 21. Five quick things to consider during the market crash.
- Proper Financial Planning is always important - Buy Term Insurance, Mediclaim and Create the Emergency Fund.
- Don't use the Direct Equity for your Financial Goals. Investing in the Stock market directly is good for wealth creation, but not for your term goals).
- Don't invest as Lumpsum in the Market Crash or Recession Times. Use 10-20 Percent in Every Crash. Crash is not the same like the Correction in the Bull Days.
- Switch your Lumpsum investments into STP(Systematic Transfer Plan) Mode. Weekly STP is better than the monthly recurring in the Uncertainty. Add more in your SIPs in Mutual Funds in the said times. On the other side, if you had lost your job - Just Pause the SIP Investments, No need to exit completely.
- Sitting with a Cash is Mandatory in the Economic Downturn period. Valuation beats anytime. Choose the Right Fundamental Stock with Rich Cash Flow.
Are you ready for the Next Market Crash ? Don't think and just safeguard yourself on Personal Finance.
Kindly share your views / comments with a smile :)
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