stock market

STOCK MARKET-WHAT’S THE  FUTURE???

Well as we see there is tremendous fear among investors regarding share market. Last few weeks have seen a tremendous fall in the share prices, and indian currency has even weakened.

The exchange rate has reached to an all-time high level of around Rs. 50 per dollar.

There is a panic among people which has led to sharp selling,which further contributes to declining the market. There is a fear of FFI(foreign financial institutions) withdrawing their investment. As we know that the market depends on peoples confidence and faith and positive belief, these negative feelings will not help market and would be for a negative cause.

With festive seasons coming up,the falling market will have an overall negative affect.

The falling market will lead to falling income, decrease in wealth of people etc will discourage people from investing. They will hold back from spending which burn the festive mood.

What’s next??

What people are asking now is whats the future of market??

Whats the level till which market will fall??

Whether to invest now or wait??

Are we seeing another 2008 recession??

Well the answer to these differs from one people to other. Pessimists will ask you to sell out of the market, while the optimists will look in the future and will have their own view.

But the mounting evidences that there is slowdown in the economy, and a fresh economic warning from US central bank, fears concerns about a second recession in a span of less than two-years.

According to Christine Lagarde, the head of International Monetary fund, the global economy is facing serious risks ahead if the governments fails to deal with the growing debt problem in Europe and United States.

“I still think a double-dip recession for the world’s major economies is unlikely, but my confidence in that belief is being eroded daily,” said World Bank president Robert Zoellick.

What to do??

What is the right move for investors. As the market fell by more than 15% in the month of AUGUST many started  to sell there shares panicing about the further fall and a downturn like three years ago.

Selling in panic is not a smart move at all and rarely helps.

Buying low and sell high is the old manthra which we should follow.

Rather than selling in panic, we should invest into the market as price is falling. The positive vibes into the market will help in bullish trend in market.

You need to have a long term view while investing in stocks. It has been seen that stock market give return of more than 10% percent in long run, more than any other investment.

As WARREN BUFFET, said, when we buy cars will we prefer to buy them at high price or at a low price. Definitely, when the price is low. Same goes with the market. Go out and invest more as the market is falling and wait patiently for future. It will be helpful and give out much more returns in future.

Rest the decision is yours. Do what you think right so that you don’t have any guilt feeling against anyone else in future.

The situation will improve in long run surely.