Currently we are in a recession
What is mean by recession?
Nothing but the contraction of GDP for 2 consecutive quarters ( degrowth in the economy), by this time we all know that we are already in a recession.
Is this the 1st recession in India ?
That's what RBI is saying, if we see technically based on the above definition "Yes" this is 1st one, but practically speaking this is the 5th recession that India is facing.
So what is the consequences of recession
1) More unemployment
2) No GDP growth etc.
That's what is happening now
Now one can ask , ohh recession is started so no growth in the economy. I am going to sell all my investments in stock market and withdraw it.
Image posted by business today.
Well
If you see the above image clearly, everytime after the recession again the economy recovered with great outcome and so well the stock markets.
We are not going to be in recession forever, but when will we come out of recession, that no one knows.
According to me , investing in recession period is the most thoughtful idea for a wise investor.
Why? How ?
Recession started - stock market reacted to that - ofcourse negatively.
Many great companies are in good or reasonable valuation now.
If you start investing or aggregating a good company during this period, in future you will end up in massive returns.
So don't stop your SIP( systematic investment plan) in mutual funds or stocks.
Don't invest in Small cap companies based on some influencers recommendation why because during recession there may be a chance of insolvency in many non performing companies.
Kindly do the research and study the companies and make an reasonable investments.
Hope I explained clearly. Thank you.
Comments
Post a Comment