{"id":362,"date":"2020-04-06T09:56:19","date_gmt":"2020-04-06T09:56:19","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=362"},"modified":"2020-04-06T09:56:21","modified_gmt":"2020-04-06T09:56:21","slug":"should-buy-sell-or-hold-investors-confused-amidst-coronavirus","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/should-buy-sell-or-hold-investors-confused-amidst-coronavirus\/","title":{"rendered":"Should Buy, Sell or Hold? \u2013 Investors Confused Amidst Coronavirus"},"content":{"rendered":"
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Whenever a stock or benchmark index falls more than 20 per cent from its peak, it is defined as a bear market. If we look at the benchmark indices Nifty & Sensex, you\u2019ll notice that both indices fall more than 30 per cent from its peak amidst coronavirus. Undoubtedly, we\u2019re in a bear market and if we follow the advice of experts, it is the best time to invest in stocks. But, is it? – <\/em>Because the panic selling in the market is indicating that investors are not ready to take that bet. If anything they are focused on is how to survive in the bear market<\/a><\/strong>. While they are at it, many investors pulled everything out of equities and decided to go with other investment-class. However, some courageous investors are buying aggressively by looking at the discount prices. Of course, some are holding on to their investments and playing dead. <\/p>\n\n\n\n

It is hard to think that if\nanyone escaped from the carnage due to coronavirus. Many investors incurred substantial\nlosses due to over-exposure to the equities. It is was all of a sudden that\ninvestors couldn\u2019t anticipate this. On top of that, many foreign and domestic\ninstitutional investors also pulled their money back from the capital markets. But,\nit is no longer the coronavirus outbreak worrying investors but also the\neconomic impact of the lockdown across the country. It is not the type of\nfinancial market crisis that can be addressed by monetary policies or interest\nrate cuts. The impact of worldwide lockdown can have its effect for months and\nexpected to last longer than the previous financial market crisis. Due to which\nit will take quarters for businesses or sectors to bounce back. <\/p>\n\n\n\n

What Investors Should Do Now  – Buy,\nSell or Hold?<\/h2>\n\n\n\n

Now investors are in the dilemma\nwhether they should buy, sell or hold. In the current phase, the foreign\ninvestors already pulled approx. Rs. 60,000 crore from stock in just one month,\nhowever at the same time, the domestic investors poured approx. Rs. 50,000\ncrore in the market. But, if the sentiment remains the same, even domestic\ninvestors will start exiting. It is the first time, the advised and\nDIY-investors both groups suffered substantial losses in the market. Some investors\nwere lucky to exit the market in time. But, a large percentage of investors\ndecided to use the \u2018Play Dead\u2019 strategy to survive in this bear market. They\nare holding onto their investments, waiting for the bottom. Once the base is\nformed and an upward move is confirmed, they will make a move. <\/p>\n\n\n\n

The history suggests that it\ntakes some time for bottom formation from 10 to 27 months and we are not there\nyet. Besides, we have fallen just 30 per cent in 2 months so the downward trend\nlikely to continue. Many experts stick to \u2018Buy\non the cannons. Sell on the trumpets\u2019<\/strong> means \u2013 buy when the market is low\nand sell when the market is high. According to them, the investors should now be\nbuying equities slowly in a staggered manner as the bottom is not formed yet. Investing\nin stocks<\/a><\/strong> in a bear market like this could lead to big returns over the\nlong-term.  However, in doing so, the\ninvestors should take it slowly in a staggered manner because aggressive buying\ncan backfire as we don\u2019t know the bottom yet. <\/p>\n\n\n\n

Investors should be on the lookout to the fundamentally strong stocks because they will be the first one to bounce back when the market starts to recover. Investors who are in the market to make long-term investments can benefit from discounted prices to buy at low and sell at high. Many Nifty50 stocks are at their 52-week lows<\/a><\/strong> which allows investors to benefit from discounted prices and buy stocks of blue-chip companies<\/a> <\/strong>to make long-term investments. \u00a0<\/p>\n\n\n\n

Disclaimer:<\/strong> The\nviews and opinions at Invest19.com are expressed by the experts are for\neducational purposes, not to profile any professional advice to encourage users\nto make investments. Invest19.com advises users to check with the certified\nexperts before making any investment decisions.<\/p>\n

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Whenever a stock or benchmark index falls more than 20 per cent from its peak, it is defined as a bear market. If we look […] Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":363,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,10],"tags":[86],"class_list":["post-362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","category-investment","category-featured","tag-buy-or-sell"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=362"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/362\/revisions"}],"predecessor-version":[{"id":364,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/362\/revisions\/364"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/363"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}