Many investors around the world might be in this dilemma of whether to Buy or hold investments or to exist from it ! As we all know in recent weeks Covid syndrome started showing its results in Us , Europe And specially in China ! if you remember the events in 2019 then you will be able to relate it with current conditions . In case of indian markets As the below chart of Nifty shows , At a point things appeared to be stable but suddenly covid wave changed everything and people sell investments like anything ! All world markets indices chart will appear more or less similar to the nifty index chart .
Now ,the KEY question is should you sell or hold ! or add more investments in 2023 . As of now the Covid picture is not clear and coming few days might give better idea , Still it seems that over all 2023 Could be the year full of uncertainties . It may be because of Covid or Global war alike situations or environmental changes or political unstability .. the triggers can be any ! We all know that adversity and opportunity are two sides of the coin , So if you are going through bad times then there is always some ray of hopes , Something which has potential to deliver the great results . Offcourse ! in case of investments one should also remember that ,Good cos in last Covid may not be equally good in other times , You need to be selective in picking correct ones .
You can simplify this by - DEFINING your investments horizons ! check below scenarios
case 1 - . if you have some stocks which you wish to hold for next 7-10 yrs then don't need to do anything even if markets fall heavily and at a point valuation of these investments turns negative .
case 2 - if you have something which is for purely short term and you think it will not sustain the market fall , then sell those now , even if there is some loss and be ready with cash to grab better ones !
case 3 - if you have not started investing and waiting for the markets to fall in 2023 then you might decide your strategy / portfolio allocation now and be ready to excute . Many times it is seen that , people have money but not the will to execute their created plans as they feel , markets will turn more negative ! But who know's that will surely happen !
If your investment platform offers option to place the advance orders at your defined prices then its Great option, you must use it to your advantage as it will eliminate over thinking .
friends , Now a days as world is closely connected any event happening at one corner of the world may show some impact to the investments at another part of the world. The financial investments like stocks , mutual funds ,Unit link insurance is more sensitive to economic developments in the country or world . It has lot to do with global stability and trends of the future . When Different types of media starts talking about any uncertain events then it creates fear in the minds of investors . IF you are investor who has put money in real estate , Gold or stocks then in case of Covid like situation you will be tempted to sell your stock investment first as ,
You can see its value dropping in real time ! its easy to liquidate and you are free to sell in parts , plus its highly regulated with huge transparency in system . But you will not feel panic for your real estate assets which will also get impacted in any uncertain situation .
So , ideally you don't need to be panic always in case of equity investments , first we need to check what was our criteria set while making the investment , check if there is any other way than existing in loss , if not then only you will need to exist .
Whenever we buy Gold , Real estate most of the times we keep it for very long term and not get panic in down markets ! Same should be applied to financial investments like Equity , mutual funds . In most asset classes you get Good returns in long term .
If we assume that markets will fall in 2023 then one should be thankful for getting the opportunity to invest for long term wealth creation . I would suggest to prepare your money and plan out ways to invest if you get chances in 2023 . And even if you don't get still one should not wait too much for making investments as its Cycle .
just like no one can predict the top , no one can know the bottom as well , Many analysts says that its not the time of investments but the timing given to the investment to grow . Every Good thing takes time to grow and you can boost the speed by giving adequate boosters , same way you can speed up your wealth creating by adding right stocks , mutual funds or correct booster to make your self richer in long term .
Sir warrent buffet has given huge amount of time for his investments to Multifold in value then why not we can !
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