Savers who have invested capital in equity-based savings instruments are in shock. This is also very natural because they feel that the ups and downs in the stock markets are a sign that something bad is going to happen to the Indian economy in the future. This is not true at all. The reason for whatever is happening in the stock markets right now is very clear. These reasons are not internal, but external. It is a natural disaster, which has simultaneously appeared in countries around the world. Due to its global nature, it is almost impossible to understand and also we are facing it financially. Think about the global economic slowdown of 2007-08. At that time, economies around the world understood only one way to recover from the recession – add capital to the economy, drive business and increase consumption so that the wheel of the economy runs. Although many ill effects also came to the biggest advantage was that the cycle of capital kept revolving and many countries recovered from the global economic slowdown.
In fact, the practice of sticking to the basic principles fits perfectly on the same occasions when the markets are either in sharp decline or they are taking a sharp bounce. As the volatility in the markets increases, it is only necessary to stick to the basic principles. These principles are very simple. Do not drift in the immediate market conditions, choose a quality investment, stay conservative, divide the investment properly, invest only long-term in equities, maintain a debt-equity balance and be better without being distracted by market fluctuations. Keep investing in stocks, these are the qualities of being a sensible investor and don't stick to the basic principles in adverse circumstances.
Even in the current era of the Corona crisis, many countries and people are seen adopting the same rules, which is slightly incomprehensible. It is a period of natural disaster and in such times, the first need to keep everything on track is to pay attention to its health aspect and then look at the food needs for the people. This disaster has not come to the economy and it cannot be resolved first by fixing the economy.
