Markets are Falling & Portfolio is bleeding. What to do now?

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Markets are falling and with more than dozens of quality stocks are below their valuation price. But the fear of catching the falling knife is not yet over.

Being an investor it is always difficult to accurately speculate the market direction but when it comes to portfolio management the speculation turns into fear. So, what shall one need to do, if they are stuck in this blood bath or planning to buy stocks in this current volatile market scenario?

Fear of Economic Slowdown, Recession, Financial Crisis, or Bankruptcy is not a new term in the stock market. It’s a cyclical event but for the investors who wants to create fortune in this volatile market it is the time to be wise and choosy.

To reduce the fear of losing of money, here are the 3 Financial Tips that can help out in taking smart decision while considering the market volatility.

  • Get your Portfolio Review from the Expert
  • Keep Investing in the Viable Business
  • Don’t Panic, It’s the opportunity.

Get your Portfolio Review

First and the foremost thing, to do is Get an Advice from the Expert.

Because when lots of attractive stocks are available at cheap prices then being selective with specific stocks is difficult. And here difficulty is the key that makes the money works.

As the billionaire investor Mr. Warren Buffet once said,

Diversification is protection against ignorance. It makes little sense if you know what you are doing.

Making choices by reading each company’s fundamental from the chunk of thousands of listed entity can be a cumbersome task. Further, it may lead to over-diversification of portfolio. Having a professional to analyze & suggest stocks build confidence in mind and reduces the stress of picking collectibles from the junk.

Over Diversification - Markets  are Falling & Portfolio is Bleeding

Confused by too many choices

Professionals has the ability of reading & analyzing the fundamentals like a pro – so being a smart investor it is always better to delegate the work.

Therefore, before going for  a shopping in the market or taking a cart to pick your money-making asset consult the Financial Advisor.

Keep Investing in the Viable Business

If advisory thing doesn’t satisfy your need then, DIY (Do-it-Yourself) should be the key. And remember what Mr. Warren Buffett said,

 “Never invest in a business you cannot understand.”

Before picking up any company for investments, its always better to understand the business model and revenue model of such entity.

Here just understanding the business model doesn’t mean or limited to its type but the entire business process of the company with its revenue making activity. Once the company’s understanding is clear then, it’s easy to avoid those companies with less viable businesses.

Furthermore, the search from the huge list of stocks is difficult so using stock screener facility (like Screener.in) can save your time & effort.

Don’t Panic, It’s the Opportunity

Stock market knows for its volatility and making money in such volatility is not everyone’s cup of cake. Bottom Fishing of any stock can be a risky task and can give rise to blood in your portfolio.

Following  the allegory of Mr. Benjamin Franklin ,

The Intelligent Investor shouldn’t ignore Mr. Market entirely. Instead, you should do business with him but only to the extent that it serves your interests.

Every fall in the stock prices doesn’t mean that the company has any discrepancy. Identifying such companies which fall just due to their peers or herd trend is what makes shopping worthwhile.

Point to Remember:

One bad stock in a portfolio can set you back in months or years when it comes to achieving your Financial Goals. There’s nothing worse than watching your hard-earned money getting dwindle.

So, discounts are everywhere and being choosy can bring or create fortunes for you.

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