What Next after this Share Market Crash due to CoronaVirus?

Market Crash 2020 due to Coronavirus

With the Coronavirus cases rapidly rising day by day in India, people are becoming skeptical about the future. Amid this scare, they’re jittery and thus making irrational decisions with their Investments. Few of them, this scare took over and played with their mind, and as a result, they’re redeeming the money by selling their Equity Investment portfolios.

For Millennials, who’ve started investing in some 2-3 years back, possibly the first time they’ve experienced the bottom fall out of the market. Now, they may be pondering changing their money from Equity to Fixed deposits.

But Wait! In this Blog Post, we are gonna to tell you about some interesting facts. 

How much time Equity Investments will take to recover?

From the Last 40 Years, Since 1985, there were 6 Instances only when Equity Market has corrected more than 40% from their peak, and there were only 3 chances in this duration when it crashed more than 50% from their peak level. But, when things normalized, it recovered sharply and gave stupendous returns to their Investors.

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See this table and observe how much average time Sensex took to recover back 

Market Crash in the past

We took all the Market crashes here when it corrected more than 40% in the past and found, on average, every time it took two years around to recover to the previous high level. In this, the shortest period of recovery has been six months, while the longest period was for two years, eight months. The average period was about one year, six months.

So, ideally, if we look back in history, it is observed that this is not the first time we saw such market correction. In the past, we have already seen these ups and downs, even worse to this what we are seeing now. But everytime it bounced back eventually. And, the average time it took in the past was 2 year around.

What’s more; If you keep investing with your Investments and stay put with your Existing Investment. This Recovery cycle works faster because you buy more units of the same fund or stocks at very low prices thus make the Investment cost lower, and hence you earn better returns when things get normalized

So, stay put with your investment and keep investing. Don’t Stop your SIPs. This is the best time after 2008 we all saw to get the benefit out of this market opportunity. So, Don’t lose this time.

 

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