Monday, 6 April 2020

Investment strategy in Bear market





You are lucky enough if your portfolio is still empty and you are looking for investing in stocks for next few or more years. Because most of those investor's portfolios are bleeding very badly who has bought shares in last month/ or starting of the 2020. Don't worry if you are one of them, this is right time to add more stocks to your portfolio it's just because of the coronavirus impact. No need to panic for investor's.

Let's talk about Indian stock market

Till now because of the coronavirus impact sharemarket is already dropped about 30% in last few days( about month). And also nifty hit seller circuit.

Let's come to the point
1. Long period investment

It is impossible to predict bottom of the stocks for anyone. No one can be sure that stock will be get reversed from particular price(where we called bottom)
But in bear market if you found stocks ar their fair value and company is fundamentally strong then this could be best opportunity for long run investments.

Note: Remember one thing, you can find good stocks at their fair value only in bear market.

2. Buy Dividend Stocks

Find out the company who are often paying dividends to their shareholders. In bear market, it could be a good time to add dividends stocks, to your portfolio. In doing so you'll not only start generating a steady income stream but also you can reinvest your dividend money in another side.

Find out some best stocks in bear market who can perform very good in next coming years.

For example if you had bought Amazon shares in 1997 of $5000 investment then it would be more than $4million today.

This is the power of compounding returns.

You can't go back to the 1997 and buy shares of the Amazon.
But you can definitely find out the shares who can be like Amazon in next coming years.
Note.  Don't panic find good stocks who's are fundamentally strong it will perform good in next year .

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