For friends who are confused about whether to invest in our continuously declining in the global stock markets now, or to exit the market altogether, I hope this chart will be helpful.
I am writing this with the perspectives of Indian Stock Markets but it can be taken widely across the globe as well.
The strength of the bears is that while they move rapidly, the bulls advance patiently.
The main reasons for the market decline are:
1. Geopolitical tension
2. FII selling
3. Tariff War
4. Earnings Report of the listed companies.
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and the list goes on.
All these are only temporary events. A situation is now developing where the world countries are completely avoiding the US.
This we are witnessing from the World Leaders Speech at World Economic Forum now happening now in Davos, Switzerland.
The time is coming to use their own products against them.
One must understand that when a problem reaches its peak, a solution is about to emerge.
Very soon, the European countries are preparing to put an end to Trump's game.
Such news is always common in the market; all of this will cause the market to register a downward trend.
But remember, friends, the market will silently register a peak without any apparent reason, and only then will it become visible to us.
In my opinion, it is best for long-term investors to be patient. If you exit the market seeing this decline, you will later find yourself in a difficult situation.
The stock market in India has fallen about 5% in the current month itself; if they push it down one more step, it will finish the job and then slowly move upwards, creating opportunities.
Friends who are doing SIP mutual funds should continue their investments without fear.
Use this decline as an opportunity to reinvest.
Friends involved in direct stock trading should select good stocks and, when those stocks reach a proper support level, invest in two or three installments.
The market will provide the time for a patient upward movement.
Please remember that Investment does not grow in a single day; it grows gradually, day by day, sometimes declining and sometimes growing.
Patience is very important in the stock market.