Investing Ideas in a Down Market

Article written by Sherin Dev; Follow me in Twitter or Facebook . To get latest news and articles Subscribe for free!

Internet world is full with tips on what want to do in a down market. They all are targeting small investors who are more panic due to the present market crash and financial turmoil. Business newspapers filled with market crash news in a daily basis. Can you invest at this time? The ultimate answer is “Yes”. Read below to get an exact idea to the right place to park your money.

I don’t know how many of you read the story of loses happened to billionaires around the world because of present financial turmoil. Lots of suicides happening because of huge money lose. You might have read what happened to Mr. Warren Buffett, the greatest investor, at this time. Yes, everybody losing in the market but he added another $500 Cr’s to his wealth. How?

Any one of us can do the same. I agree that, this is NOT the time to invest in stock market but in the same time, this is the correct time to invest in stock market. These all depends on how your mind works and how much you are tied with your money. If you are dealing with money like a hen which is sitting on the eggs, you are not the right person to read this. Everyone has fear about money lose. But the truth is, intelligent action through well study and long term focus, stock market will never give you loses.

Remember, stock markets are at the bottom line and valuations are very attractive with all the companies. There are 2 major options in front of you to invest your money at this time of down market.

1. First option is very simple and it is secure. Park your money to bank FD’s for desired time and sits freely. Enjoy the interest what you are getting. Your money is safe. But what will do if the bank crash? That is your question to answer yourself.

2. Second available option is, you still have options to invest in stock market. It is not a joke. You can still invest in stock market if you think like Warren Buffett. You are well aware that stock prices touched the bottom line and valuations are very attractive. Yes it is. Financial turmoil or the stock market crash doesn’t mean that all companies are in lose. Why don’t you select large cap companies that have well established business as well as increasing earnings at these times too?

Yes. Invest at this time on the blue chip stocks of carefully selected companies. Don’t go behind any mid or small cap companies at least at this time. Blue chips are your best friends at this time. They have well establish business and it is impossible to close down such business to give you lose. So select such companies and invest on that. This was the method what Buffet was practically doing.

Valuations are very attractive and price of the blue chip stocks are in bottom line because of the financial turmoil. You can see there will not be any affect to there business and that is the best point you have to keep in mind to invest on that stocks.

Don’t panic after investing to well established companies or blue chip companies. Let it be there. Every down has an up. It will take time but, certainly the market it will go up. The only point to remember is, this is not the time to trade or invest your money for short time. If you decided to invest in stock at this time, invest with blue chip stocks and for long term.

It is a bad idea at this time, if you planning to invest bulk amount to mutual funds. Better, wait and see for some time before mutual fund investing. You can select good mutual funds to invest money in a SIP basis. If economic growth is intact, then there is nothing to bother

Be a prudent investor. As I said earlier, keep your new investments only to the stocks of blue chip companies. Invest in good mutual funds ONLY in sip basis or park your money to the bank Fixed deposits. I am sure that this is a temporary problem and the stock market will certainly go up by today or tomorrow. Best wishes to all the investors.