HOW TO INVEST IN FALLING STOCK MARKET !

HOW TO INVESTMENT  IN FALLING MARKET !

HOW TO INVEST IN FALLING STOCK MARKET !
HOW TO INVEST IN FALLING STOCK MARKET !

In this period of capitalism everywhere the market is fluctuated, but there is a slowdown in this capitalism as some investors are afraid of it, then there are many investors who wait for the recession to take advantage of it.

Can Boom and bust cycles in capitalism are inevitable, which means that the slowdown and the coming of fast are also definite, so it would be better for the entire investor to prepare for recession and not to pray for him because he is certain to come.

Recession is considered when the market has fallen 20% above or has been consistently negative 2 quarters.

 In this article we will look at all the things that help you not only save your original capital, but also can increase during recession.

First of all, we will pay attention to the instruments that earn profit directly in the recession, but it is worth noting that these methods will be understood only by those people who have experience in the stock market.

First of all, you have to protect your portfolio during recession and for this protection, you have to hedge all the shares of your portfolio.

The best way to hedge is to buy the same stock. For example, you have a stock of Reliance and you have an impression that there is a time of recession, then you buy Reliance's put.

 After this, if Reliance's stock goes down, the price of the Put Option will increase. The result will be compensated for your loss.

Another option to earn profits during recession is that you buy a straight put option, you can also buy the option of a stock and also a sensory index will also benefit you when the market goes down.

One of the most important ways to be safe in recession is to invest in such mutual funds, which either do not invest in the stock market or do very little.

 At least this benefit is investing in a mutual fund that your management of capital is being seen by a specialist and in the recession, the specialist will have more knowledge of the ups and downs of the market.

As a result, he will not only be safe in it but also will be able to grow. Along with mutual funds, you can also invest in fixed income.

You can invest in hybrid funds which do not make any difference in moving up or down the market. This is because these funds are hedging every stock.

 If you want your money within one year then you can also apply it in liquid funds. Such funds give you 6-7% returns annually, which is much higher than interest received from savings accounts.


Another way to be safe in the recession is by investing in such stocks or in a sector that is considered safe from others.


 You choose the stocks whose fundamentals are good and they give dividends. The benefit will be that if you have bought any stock and its price has gone down, then the continuous dividend will compensate the loss caused by it.

 You can invest in areas or sectors that are considered safe, such as the Staple Goods Sector. This is the sector where there are companies that create those things for you. Milk or tea leaf making company.


The Health Care Sector is also considered to be fairly secure compared to other sectors, it will be a recurring period or a period of fast you will need health related services.


One and the other like ,

Investing in fixed commodity during the recession can be a great deal of profit. Experts believe that prices of precious metals like gold and silver go up in the recession, that is, the money can be made by investing in them.

There is a very simple reason for this to happen: The largest organisation in the market run is of those people whose only work is to invest and in the event of recession, when all other means of investment are closed or damages If you think that this money will go anywhere, this capital comes in the field of precious metals.

Before concluding this article, we will talk about two important things which is as simple as the more beneficial.
  • The first thing is that you increase your Horizon, i.e. if you were going to hold any stock for 1 year then decide to keep it for 3 to 5 years, it should do so because the market has come back faster after recovering from recession Depends on the exception of a Japan exception, every time the market recovers from the recession, it breaks down the heights of the last time and goes beyond them, but to reach this position, it will be 3 to 5 years This time is needed.                 
  • The second thing is that this recession is a kind of golden opportunity. Warren Buffett says that if the recession comes, then you wait, when it touches its lowest level then gradually start investing in the market. Finding was a golden opportunity to invest.

We hope that the information given by us will be helpful in water to your economic independence.

thanks for the time .

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