WHEN WILL THE STOCK MARKET CRASH?
There has
a lot of things that can cause a market crash but the most important points are the fearful environment, the weaker
economy, unexpected political changes, big scams exposed, and unstable conditions
in a country.
Namskar
friend my name Is Pritam
Today I
going to describe
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WILL THE INDIAN STOCK MARKET CRASH AGAIN |
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WHERE TO PUT YOUR MONEY BEFORE THE MARKET CRASHES |
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WHAT HAPPENS WHEN THE STOCK MARKET CRASHES |
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HOW TO TAKE ADVANTAGE OF THE STOCK MARKET CRASH |
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WHAT TO DO BEFORE THE STOCK MARKET CRASH |
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ARE BONDS SAFE IF THE MARKET CRASHES |
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HOW TO PROTECT MY PENSION FROM THE STOCK MARKET CRASH |
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NEXT STOCK MARKET CRASH PREDICTION |
1. will the Indian stock market crash again?
as we should know that the stock market is the reflection of the country's economy
and it should match or respect the country's economy when you are seeing an economical
downtrend but your market gives a new high that means a very soon crash will
happen it is the best indication of a crash.
But polls are done which result is saying that at the midnight of 2022
there may be a crash and the market could take a little more time to recover to
get an all-time high. Near future markets are so volatile and in justifying the
reality. many times index goes up but shares are not performing that well
which is a clear indication of something going wrong. Sometimes share goes high
but the next day it comes to the previous low, which is happening frequently. This is a small
indication of unreal things and also for crashes.
2. where
to put your money before the market crashes?
It is not easy to predict a crash but the plan can make a difference
in it. generally, big investors sell at a high with a good price and buy at the low, by this concept when you feel that it is the high of the stock then you just
sell it and then buy some bond with a good
rating and stay till the market crash or you can divide you all fund to 50-50
which means you put you 50% in equity and 50% in debt.
The more fear you are getting from the market the more you invest in debt
the more crash the more you invest in equity.
If you do not have time to analyze stock then you can invest 50% of the money in an equity mutual fund and 50% in a debt mutual fund then enjoy your dream and sleep
well but you can enter again into the stock market when you see a market crash in your local language newspaper, then you can invest your whole amount
in a break, here I am using a break to maximize your return using the law of average which
means if you do SIP than the law of average number work with you to give benefit to you.
3. WHAT HAPPENS WHEN THE STOCK MARKET CRASHES?
It's better to understand how it started when market downfall people started selling for which a fearful environment started for which people started feeling getting a big loss and they
started to sell their holding but this happens when market see big down which
they have not seen and this happen it generally play with human psychology. But
if the psychology of people is not so fearful then when the market fall then the market suddenly moves up and people started FOMO and then the market revers the people purchased the
stock again the stock goes and according
to the psychology of people stock reacts stated with the opposite of most people think with
more downfall and than an up move, they just try to trap in this time whenever the market goes up you should book profit and get out of the market other wishes you
could lose bigger. If you are prepared for both and then if you have come up with a strategy only you can make money. During the
crash time market became volatile and it was always going against what the majority of people
thought. But a bearish trader waiting for this type of crash can get
maximum profit out of it because more time market is bullish but in bearish
time stock goes down and faster than it goes up which for bearish trader make the
maximum profit from share market.
4. HOW TO TAKE ADVANTAGE OF THE STOCK MARKET CRASH?
You can not take advantage of a crash until you are prepared
for that if you are prepared for that then you can get benefited by losing less
money during the crash. But only 1% of people get the advantages from it. people
can do one thing the best thing is they can buy some good share which fundamentally
strong, it will be the best time for investment in that stock but believe me, only
10 % of people can buy at that time and the 9% people sell after some time with
loss only 1 % people stay and they get the benefit of it and they really get the benefit of that stocks up move price
but at that crash time, people lose patience the person who keep patience at
that time make serious money in a long run.
My simple advice
will be when the market is in a crash stared invest slowly from debt fund to
equity.
I don't think you should buy a bond when the market is in a crash
but buy the bond at the time when the market is at an all-time high.
You can book loss to adjust your long-term capital gain tax.
I believe it's a good time to start your investment with small
capital regularly.
5. WHAT TO DO BEFORE THE STOCK MARKET CRASH?
You should plan your investment with debt and equity for which
when the market is at a high you should book a small profit when you see an all-time high
this money should be moved to a debt fund or good quality bond and wait for the crash. you
may follow the 50-50 rule of debt and equity which means when the market is high book a small profit and move it to debt and vice versa high debt will be more than
50 % but at low equity will increase above 50%.
Read about different hedging strategy how to hedge your money against the market.
You can invest your money in gold or bitcoin.
6. ARE BONDS SAFE IF THE MARKET CRASHES?
Neither share nor bond is risk-free, the bond is less risky
than the share because if the company gets bankrupt then the first money will be paid
to the bondholder.
Some agencies are rating company bonds according to
their past payment .which means more rating means good quality bond.
If you are not sure about picking a bond then you should
invest through the mutual fund for less risk, the fund manager will do that on your behalf of you. so the bond is less risker than stock. If you invest in a good company whose
product you are using in a crash became
discounted and crash does not mean bankruptcy .which means their business goes on
and they can pay the bond money when payment time comes. you also look there rating
before investing in the bond.
7. HOW TO PROTECT MY PENSION FUND FROM A STOCK MARKET CRASH?
YOU should not worry about it until your retirement age is
closer, if your retirement age is near then only you have to prepare for it you should withdraw your total money and then you should
invest in a debt fund and equity fund in the 80% in debt and 10% in equity, you
can increase your fund according to your risk profile.
You can do a fixed deposit but it's more tax than debt fund investment so choose a debt fund .you can take the risk of only 10% to invest which can generate income for you. t
Those people who are far away from retirement can stay calm about this fund.
8. NEXT STOCK MARKET CRASH PREDICTION?
Hopefully, I pray to God that there will never be a crash
in the market but it will, due to its nature.
If your GDP is downtrend but the market is uptrend it’s maybe a signal of a market crash, when banks are giving you loans with low-interest rates which is never before it may be a signal of a crash. When you see everyone is giving you the advice to invest in the market it might be a signal of a crash.
when you see
TV channels are strongly bullish aftermarket goes all-time high it means a crash
is coming.
When your friend who is investing last one month and teaches you about the stock market to you and you are investing for the last 5 years it means cash is coming.
1.
Be aware
2.
use commonsense
3.
open your mind
4. be alert
YOU CAN PREDICT A MARKET CRASH.
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Thank You
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