Are you thinking Should You Buy Shares During Corona Virus Crash or not?
In general, it’s a bad idea to time the market. you’ll easily catch on wrong and if you’ve got a long-term investing timeline than small differences in price don’t matter.
Buying during a market crash is a smart idea. But in this situation, we do not know where the bottom line will go and it remains unclear just how big an impression coronavirus will wear the stock market.
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But, with the market down from its highs by over 10% as I write this makes sense to buy shares because of the collapse caused by a coronavirus.
Stocks are suddenly much less costly than they were only a month ago, but as typical, during a correction, there’s plenty less interest in buying them now than there was back when prices were higher.
What should you buy During Corona Virus Crash?
Did you know the fundamentals of a company before the present crash? That’s a good place to invest.
Take a new view of any companies you presently hold or were thinking to buy, and asked the following questions.
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- Does the company have the cash to face up to a protracted downturn in business?
- Is there something about the present coronavirus-related economy that fundamentally changes the longer term for this brand?
Basically, if any company lacks the cash/borrowing capacity to urge through some bad, even terrible quarters, then that may be a stock to avoid anyways.
The second part may be a little trickier but it probably won’t impact too many companies.
This may be a time to remember that investing is a long game. Use the market correction to buy more stocks of great companies. Don’t panic and stay the course. We’ve been here before, are going to be here again, and, eventually, the market recovers then gets bigger.