I’m learning about the stock market by watching YouTube videos and reading some websites. I invested money just before the US elections when the market was at its peak. I invested in good stocks, but after Trump’s arrival and his tariff plans, my situation is bad.
I’m investing for the long term (more than 1 year), but my elder brother’s engagement has created a situation where we need money now.
So, I have some questions:
Can the market recover, and will the Nifty touch 26000 again? If not, then
How much time will the market need to recover?
Tell me if you have any other ideas for getting money back from the stock market?
@Om_Upadhyay could happen 26k, but no one can really say when tbh.if you’ve got decent stocks and diversified, staying in might still work out over time.
if selling feels tough, some ppl look at pledging their holdings. Brokers give loan on investment. Zerodha has this facility.
History says Markets digest and overcomes all sorts of crazy events like Dotcom bubble, GFC, COVID, Wars to make fresh highs. So, yes, Markets can definitely recover and make fresh highs. Timing? It can be 6 months or 6 quarters or few years who knows.
What matters is whether our portfolios recover or not. Continuing our SIPs into good stocks and MFs and you’ll do great in the coming years.
My personal experience and hearing stories of 100s of people over many years tell me that markets give money if we are patient. Revenge trading or investing is not an ideal way to approach markets. Always start with a clean slate adding your experience.
Most of the successful traders and investors that I’ve seen are people who upskill themselves continuously in their jobs, professions and look at market to invest surplus funds and time to earn and learn.
Give this approach a couple of years and I’m 100% sure you’ll be in a great position. Short term money making is tough and requires lot of luck and depending on luck is not a great strategy.
Wishing you great success, @Om_Upadhyay Hoping to see you regularly on TradingQ&A
Adding to what Meher shared, you can also check out Varsity. It’s a great resource for learning about the stock market in a structured and simple way. Varsity Live offers mentor led sessions. Do check them out.
This is the core issue, what is the answer - Experts?
If he has the time, then all is well too. It is like saying see BSE in 2000 was xxx and now it is 22,000. His issue being, what to do now.
@arjun94 has given a good practical suggestion of pledging the existing stock instead of selling it and taking a loan, provided you have cashflows to repay in the future and settle the loan.
If you do have the cashflow and to settle it within a defenete time frame then this is an option. Again there is a interest cost. Do a calculation which is better.
What other option does he have other than selling in case he needs the money urgently?
I think this is the reason, why experts say, when the goal is nearing and market is up, sell and keep cash or do SWP.
Below is not to be taken as an advise, it is only for understanding purposes.
If you do not have the funds for the marriage, sell the amount you had to make up for your brother’s marriage. We invest only for the purpose of using the money so its one of the use be it gain or loss. Keep the rest of the amount in whatever you invested.
The otherside is that loan costs you 10%-14% interest. Its more than nifty’s last year return 8-9%.
Can the market recover, and will the Nifty touch 26000 again? If not, then
Yes. May be tomorrow, next week, next year or never. Noone knows when.
If your actual question is that you made a big mistake by investing at 26000 Nifty, then either you may need to evaluate good / bad stocks / funds and sell bad keep good. Or, sell everything and buy at current lows. There is no guarantee that we will not go below 19500 or no guarantee that we will reach 26000 in any timeframe.
If there is so much worry, why not just use debt to make 7% returns pre-tax and enjoy the rest of time without worry?
pledging the existing stock instead of selling it and taking a loan,
provided you have cashflows to repay in the future and settle the loan.
Ummm… remember that in this approach,
one risks losing part of or even the entire investment that one is pledging,
due to a margin call that will be triggerred if/when the market falls further.
There will always be a margin that is maintained by all lenders and and this does not happen overnight. There will be calls made and the borrower has to ensure that LTV ratio is maintained. In any case this is one of the options. Dont draw on the full amount of the loan as was suggested earlier to meet expenses. Keeping a cushion in addition to the margin maintained will be adequate I guess.
I don’t know how many years you have invested but if you have invested since covid and claim you are long term investor and your portfolio is red, then that means you have dumb money. Fix this first.
Guys i really experience the important of asset allocation
even i invested in 26k
still my portfolio in green
gold and Gilt fund protected my portfolio
when first 21900 hit nifty on that time my portfolio negative of 1 lakhs
the same was hitted second time - my portfolio is in green - i don’t know where is the magic happen - mostly Motilal fund performed well
Hoping to see you regularly on TradingQ&A
