Well as Douglas Adams Says in Hitchhikers Guide to Galaxy .. DON’T PANIC! Stock markets do go through such tough times and the best way out is to think prudently and then proceed with rebalancing your portfolio. Here are 5 things you can do when stock markets are in a downward spiral.
Take a Deep Breath:
Markets do tend to correct themselves over a time and history shows with growing economies like India returns do improve over the long term. Stocks of zero debt and companies having strong structural and volume growth with large owner holdings often do correct themselves after taking hits.
Review Your Portfolio:
Have a hard look at the companies your are investing in. A good equity investment advisor can help you look into the facts and figure before you take decisions. If you haven’t planned your portfolio till date write down your investment objectives again. With significantly increased risks in lower markets writing down your risk tolerance and the time frames you can hold on too, can help you make the right decisions
Holding on to very few or very huge number of stocks can be dangerous Health your stocks portfolio with the help of equity investment advisors who can tell how to rebalance your units. Often certain sectors (eg Pharma) are hit while others do better.
Don’t Forget to Buy:
Yes with lower prices getting those dream stocks in your portfolio will be easier. Do buy them after talking to your investment advisor.
Don’t Worry About Headlines:
Reading to much into market news and viral tv videos and analysis can actually do you more harm then good. Don’t believe your astrologer either. Do focus on fundamentals, good operating cash flow, zero debts, sound management and past performance through rough weather