- Date : 22/08/2022
- Read: 3 mins
Sensex reclaims 60,000 as calls of a new bull run increase.
The year 2022 started with high volatility for the stock markets. The tensions of the Russia-Ukraine war put pressure on the stock markets. Also, the persistent inflation and the subsequent increase of policy rates by central banks led to the weak performance of Sensex this year. The high selling by the Foreign Portfolio Investors (FPIs) kept the markets under pressure.
But in the last 2 months, the markets have recovered. The Sensex is up 17% in the last 2 months, as it has reclaimed the psychological level of 60,000 after 4 months. The confidence in the markets is despite the bad news related to China-Taiwan tensions. Now the FIIs have become net buyers in the markets, and oil prices have come down. Although inflationary concerns remain, the general consensus is that inflation has peaked.
Related: 5 best stocks in the Indian markets in the last 75 years
What should you do?
If you are a new investor, you can book some profits. But if you are a seasoned investor and have invested across market cycles, you can continue to invest in the markets. The faith in the equity markets should be maintained, but one should turn down his/her expectations. Investors should not expect double or triple-digit returns that they got in the last 2 years.
The volatility in the stock markets can return as the underlying inflationary concerns remain. Also, the slowdown in the US economy can cause more volatility in the markets. If the China-Taiwan situation deteriorates, the markets will not be spared. But despite this, the experts recommend maintaining your SIPs and continuing investment in the stock markets with a long-term perspective.
Related: Stock market for beginners: How to make a profit by investing in the stock markets?
Patience is the key
If you are retiring, you can take out the money from the stock markets and invest in debt funds to save yourself from market volatility. But if you have time on your side, you should continue to invest via monthly SIPs. The last 2 years were also unexpected for the markets, but if you were invested in the markets, you would have made the most out of it. It is difficult to time the markets, and patience is the key. As it is said, the time in the markets is more important than timing the markets. If it is a new bull run or not, we will get to know in the future. The correct strategy is to remain invested and benefit from the growth in India in the long term.
Related: Different types of IPO investors
An Old, New Bull Market?
The year 2022 started with high volatility for the stock markets. The tensions of the Russia-Ukraine war put pressure on the stock markets. Also, the persistent inflation and the subsequent increase of policy rates by central banks led to the weak performance of Sensex this year. The high selling by the Foreign Portfolio Investors (FPIs) kept the markets under pressure.
But in the last 2 months, the markets have recovered. The Sensex is up 17% in the last 2 months, as it has reclaimed the psychological level of 60,000 after 4 months. The confidence in the markets is despite the bad news related to China-Taiwan tensions. Now the FIIs have become net buyers in the markets, and oil prices have come down. Although inflationary concerns remain, the general consensus is that inflation has peaked.
Related: 5 best stocks in the Indian markets in the last 75 years
What should you do?
If you are a new investor, you can book some profits. But if you are a seasoned investor and have invested across market cycles, you can continue to invest in the markets. The faith in the equity markets should be maintained, but one should turn down his/her expectations. Investors should not expect double or triple-digit returns that they got in the last 2 years.
The volatility in the stock markets can return as the underlying inflationary concerns remain. Also, the slowdown in the US economy can cause more volatility in the markets. If the China-Taiwan situation deteriorates, the markets will not be spared. But despite this, the experts recommend maintaining your SIPs and continuing investment in the stock markets with a long-term perspective.
Related: Stock market for beginners: How to make a profit by investing in the stock markets?
Patience is the key
If you are retiring, you can take out the money from the stock markets and invest in debt funds to save yourself from market volatility. But if you have time on your side, you should continue to invest via monthly SIPs. The last 2 years were also unexpected for the markets, but if you were invested in the markets, you would have made the most out of it. It is difficult to time the markets, and patience is the key. As it is said, the time in the markets is more important than timing the markets. If it is a new bull run or not, we will get to know in the future. The correct strategy is to remain invested and benefit from the growth in India in the long term.
Related: Different types of IPO investors
