Is it a good time to buy stocks amidst the Coronavirus pandemic ?

Is it a good time to buy stocks amidst the Coronavirus pandemic ?
Everyone will be thinking of how badly the coronavirus impacted global share markets including India.
But the real reason is something different and we didn't pay much attention to it for the last 2 years and the year 2019 gave a clear indication that the market just needs a reason to fall.
Look at this screenshot I took.

This is a Nifty PE ratio for the last 20 years,
So as you can see the best time to invest in the share market is when PE values turn green and as soon as they start to turn red pull out the money in proportions not all at once, you will miss some rally but you will be able to save more than you could have earned in the rally you missed.
vise versa when the market gets crashed wait for PE to turn green.
You always need to sit with cash in a bear market and wait for turnout which no one can predict, so invest in an incremental manner.
I know you will say from 2017 PE was in red and that's the reason the market failed so hard, the correction was overdue. that's why the market went back to 2016 levels.
One tip -When PE stays red and you think the market is overvalued, that's the best time to invest in GOLD. you can buy physical, ETF or Sovergian Gold bonds.

Comments

Post a Comment

Popular posts from this blog

3 Ways to Invest in Commodities in India stock market concept

Image
Invest in Commodities in India Recently, the price of crude oil went negative due to very low oil demand because of coronavirus. This very low price of crude oil aroused interest in many traders and investors to invest in crude oil. Not only just crude almost every commodity be it natural gas, copper, aluminium, etc are also trading at very low prices. In this post we will discuss 3 ways to invest in commodities in India. #1. Buy directly from MCX All you need is a commodity trading account, which almost every broker offers. Once you have activated the commodity trading account you can directly buy crude oil and also other commodities as well through your broker. The drawback here is that commodities are traded in derivative form, which means you can trade in them through futures and options contract, which have an expiry date. So this is more of a trading product and not an investment product as you can’t hold it for long without rollover. Just recently, since US...
Read more

Do you also believe that long-term investors make more money than day traders? Why and how?

Image
Do you also believe that long-term investors make more money than day traders? Why and how? There are a number of highly successful long-term investors. The likes of Warren Buffett and Charlie Munger instantly spring to mind. They have generally returned around 20% per annum over their investment careers. While this level of return is unlikely to make any investor rich in the short run, when compounded over a long period it can lead to significant returns. For example, over a 30-year time period it could propel an initial sum of money around 237 times higher. As such, even modest sums could become seven-figure portfolios. Of course, most investors may be unable to deliver returns which are as high as 20% per annum over a 30-year time period. However, even returns which are in line with those of the wider index could end up turning a small portfolio into a large one in the long run. For example, returns of 8% per annum over the course of three decades would equate to an end...
Read more

What is the shocking secret of Ratan Tata?

Image
What is the shocking secret of Ratan Tata? 1. 65% of his earnings goes to Charity:  Ratan Tata couldn’t place himself in the billionaire list because a large amount goes in the charitable trusts ( around 65% of his earnings). He is one of the most generous person in India. Salute to his great work. 2. Donates every year for education:  Ratan Tata is very known widely for his donation activities in the country and he also donates a huge amount in the education sector. He gave $50 million to Harvard Business school and $25 million to Cornell University, specially for the Indian students. 3. Parents got separated:  In the year 1940, Ratan Tata’s parents got separated and at that time he was just a 3-year old kid. After that he was looked after by his grandmother. 4. IBM offer:  When Ratan Tata completed his education, he got a job offer from IBM but he refused to take that job and joined his family business. 5. Education:  Ratan Tata stud...
Read more