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‘When it comes to investing, nothing is more exceptional than bearing a long term vision.’
By the way, who do you think is an incomparable investor? Ideally, a distinctive investor is someone who has a vivid goal setting, intimate knowledge of the market prospects, righteous mind, lots of forbearances, and someone who can avert risks as well.
Largely, an exclusive investor is optimistic and makes the most out of every existing situation.
As globalization emerged, worldwide pandemics occasionally hit human lives and stock markets…with it arises ‘Investor’s panic.’
Recently, the covid-19 pandemic affected not only the public health but throughout the year, the lockdowns and changing customer trends have had various financial consequences on the stock markets too.
So is it sagacious to invest your money in stock markets taking into consideration the present scenario??
Almost every investor had a roller coaster ride in 2020.
The 30-share BSE Sensex dropped by 20% during March but gradually the smart investors quickly made a comeback in terms of the index.
However, the existing pandemic still flickers the enraging confidence of many of the investors.
But do you need to really worry???
Well, the market downfall is not an issue if investors are flexible with the market flow.
The year 2020 is a great tutorial for investors…that if you stay tuned with the main indexes, you are not a fool anyway.
Despite one of the worst pandemics in more than a century, investors should cling to ‘realms of reality’ for this upcoming year.
Yeah!…you heard it right…factors such as covid-19 vaccine development, and plans of vaccine administration…bring a merry-go-round feeling as we enter into 2021.
What brings you a ”good return’ in 2021?
Even if the real economy remains so fragile, still the market valuations in 2021 are soaring high magnificently due to some Investors’ distinctive perspectives.
What could be those reasons? Look below.
◆The Investor’s roadmap ahead
Emotional equity won’t be favourable in this present situation.
You may have lost lots of money recently, but you dare think that this is the end of this world!
What I’m advocating to address here is …do not stick to “uncertainty thrash” rather uncertainty should be an Investor’s friend.
The damages during lockdown were vast but the recovery is bumpier. So, dear Investors!…profitability is sure to improve more in the forthcoming quarters and you have a vast scope.
◆Portfolio rebalancing
Rebalancing portfolios allows individuals to keep their risk levels in check and minimize risk.
Being an investor, if your investing strategy changes halfway…then you should always use the parameters of rebalancing.
It helps in fulfilling a newly devised asset allocation.
In 2021, your static portfolios towards volatile markets will make you swim along with the turbulent current. Thus justifying your investment in this current month.
◆Aptly places of investment
As the economy is on the verge of recovery(gingerly though)… the investors should target investing in sectors such as banking, industrial goods, discretionary consumer products, and IT sectors of course.
Well, if you speculate the Pharmaceutical companies…they are also to do great ahead of time this year.
◆Avoid speculative trade
Speculation in stock markets is often linked with economic bubbles, and these bubbles are essentially like social epidemics which is dreadful at times for Investors. Consequently, market volatility is increased.
A picturesque of some excellent equity investors
- Piper Sandler(Target:4225; EPS:$172)…it’s going to be bouncier even more this year.
- Oppenheimer(Target 4400; EPS:$175)…ready to get bumped further this year.
- JP Morgan(Target 4400;EPS:$178)
- PSU bank remained the top achiever.
Undoubtedly, this year is likely to see a surge, and the investors are advised to stick to standard names rather than choosing second-nug stocks.
Conclusion
There’s nothing such an ‘ideal time’ to engage in or escape out of stock markets. Although it’s quite unclear about the sustainability of the prevailing pandemic, yet this is not the termination of our existence.
Investment is not immune to market volatilities, not in the history, present, or in the upcoming years. So if you are waiting for the ‘best time’ to invest in shares sectors…oops!!!, you may miss the train!
