Stock Market Crashed -What to do ?

Stock Market Crashed - What to do??

On 14th January 2020 stock markets all over the world were all time high. NIFTY50 was at 12340. Suddenly NOVEL CORONA virus or COVID-19 out break world wide. Resulting economic uncertainty worldwide. Government of various countries announced lock down to stop further spreading of this contagious virus.Due to this lock down action all economic activity stopped. Stock market always reacts faster than economic outcome. Hence NIFTY50 crashed to 7655 which is lower than 2014 level.

Investors lost their value of investments more than 30 to 50% . New investors also in dilemma as market is going down day by day.

Ups and down is the general feature of stock market. Investment always given positive result in long term as business grows in long term , hence stock price also. During this period market goes up and down several times but given good return in long term. Lets understand this with some statistics of last twenty five years.

                                                                   #bewithmishrajee

1. In the year 1997 global market crashed due to economic crisis in Asia , Nifty50  was      around 1000 at that time.

2. In the year 2000 market collapsed due to technology bubble burst, Nifty50 was          hovering  around 1500 at that time.

3. Market was steady till the year 2008 and again crashed due to Subprime Crisis in USA as most of financial institution failed to repay their obligation. Nifty50 was around  5000 at that time.

4. Small bear market were their during last 10-11 years and Nifty50 were around 5500.

During the year 2014-15 it was hovering around 8500.

5.The year  2020 came with a good note . Market touched all time high then sudden Covid -19  outbreak pulls down to the level of the year 2014 .Almost 40%  value of investment eroded due to this.

Above statistics shows us the market will definitely come out of this depression. Stock market always gives good return in longer run. Economy will recover once this CORONA situation saturated. This type of pandemic never last long . Pharmaceutical companies already researching for vaccines. One treatment come the situation will be over and the economy will start picking.

My advice to all investor to stay invested as this is not the right time to exit rather invest some money at this level if you are having surplus. New investors must start investing slowly.

 Note: Nifty50 is the benchmark index of National Stock Exchange. Most of investors in India follows this index as  benchmark.