StockAxis tells you how to make profits from stock dips!
December 18, 2021 | 64744 Views
The benchmark Sensex slumped over 700 points while the Nifty 50 slipped 1.5% on Friday. The reason for the Stock Market crash can be attributed to two major reasons - The rising Omicron cases & Fed's hawkish stance on interest rate hike.
While the volatile nature of the market in recent times has worried investors, it is important to remember that volatility is normal. In fact, it would be unusual for the markets to lack volatility. Regardless of the fact that the market is crashing due to a black swan event or due to regular & healthy corrections, one must always remember that mankind has always overcome adversities and all the corrections & crashes are followed by rallies. Oftentimes, Powerful rallies. Just as the saying goes, "From ashes, a phoenix shall arise."
A new phenomenon that we have witnessed in the post covid times is the ‘V-shaped recovery’ of the markets. This is basically a swift move lower followed by an equally swift move back higher. This leaves most investors out in the cold unless they have the ultimate discipline to withstand the big drops and uncertainty. StockAxis is here to tell you what you need to know during these uncertain times.
Markets always come back. But some stocks don’t.
While almost all the stocks drop when there is a market-wide sell-off, many stocks bounce right back up when the bulls take over. You just have to ensure that you are holding such stocks. It is important to remember that the top leaders of the next bullish rally may differ greatly from the leaders of the past rallies. Also, the stocks that get too much media attention can move rather quickly before you have a chance to get in. So instead focus on stocks that show a combination of upgrades and higher earnings estimate revisions.
Gauging the Fear
Oftentimes, market-wide sell-offs are predicated on macro events that can often lead to nervousness in the stock market. Investors are unsure and the market sentiments are affected. One of the indicators that measure the volatility of the Stock market is VIX. A simple interpretation would be that as the VIX rises, the amount of fear in the market is rising as well. However, don’t see downside volatility as the enemy—see it as an opportunity. Don’t abandon your long-term investment plans and stay put for the right opportunity.
Riding the Rebounds
Once the said opportunity presents itself, you can ride the rebounds. Missing post-crisis rallies, or any rallies for that matter, is one of the primary reasons the average investor tends to underperform over time. Investors too often tend to get in their own way, making emotional decisions at just the wrong times.
StockAxis can help investors avoid making that mistake. We help investors enhance their portfolio’s diversification while also helping them stay focused on the long-term, through good times and bad. If you're looking for one of the most potentially profitable ways to cash in on rebounding stocks, we invite you to join the MILARS Portfolio Advisory Services based on six guiding principles.
Let us show you who we are and how we can work with you and for you. There is no cost to learning more about our strategies and our approach. We shall be happy to take the time to answer your questions and tell you more about what we do. Get started today!