World

A Survivor's Guide to the Market Crash: Don't panic

Investors are a worried lot about the ongoing turmoil taking place across the world markets. Human emotion is such that individual investors tend to offload when equity prices are falling and invest when they're reaching peak levels.

Market analysts hold the view that the fall was not so huge and investors need not panic. What's happening in the global markets is just a very much needed correction and this is a good thing in the near future.

The ongoing downfall across the global markets is not a cause of concern for the investor fraternity. The plunge is just a little correction in the markets that grew over 200 percent after the global economic crisis since 2009.

For instance, the S&P 500 index soared 220 percent during the past six years. Investors who invested in the market after the economic crisis should be laughing their ways to bank. The present market crash is just 10 percent shave off from the gains recorded post-crisis.

Analysts at many equity research firms advise investors that no need of offloading their holdings these days. Investors just forget about what's happening in the markets and wait for the right time for good money making opportunities.

Since 9 March 2009, Dow Jones continuously rose until 15 May 2015 registered a whopping growth of 185 percent. After that the Dow Jones shed 13 percent during 15 May and 24 August this year.

CNN Money's Heather Long offer this advice: instead of worrying about the markets, just enjoy your morning coffee with newspaper (caution: Don't read business pages), take your puppy for a walk, spend some time for practicing yoga, do meditation, take care of your kids' homework and so on. But, this is not the right time to offload your investments.

After some time, the correction will be over and markets will be back on tracks for good opportunities to bring back the smiles on investors.

There are several positive factors in the global economy that are being ignored by many. Everybody is talking about the slowing down in Chinese economy, but in real terms it's growing. The growth rate may not be at desired level of over seven percent or nine percent, but it's expanding. The world's largest economy is also doing well, if not great.

The US economy growth is expected to be about two percent this year and creating many jobs for the Americans. The unemployment rate is also at its lowest during the past seven years. World's largest and second largest economies are doing well. So, no need of panic about the present turmoil in the global markets.


Real Time Analytics