The market crashes 40 to 50%. Your portfolio’s value declines. What do you do? We know that market downturns are unsettling, even for seasoned investors. When you see your portfolio’s value decline triggers emotional responses that lead to impulsive decisions. Here’s what you should consider doing when the market takes a dip.

1. Build Up Trust it will Recover:

There will be many who will give you advice but how to build confidence when the market is down? This table gives a snapshot of when the market was down, when it recovered and how long did it take to recover.

When you look at it, you will realise that when the market is down, it doesn’t stay there. It corrects itself and comes back on track. All you need is patience and a confident partner to support you in your investment journey. So, what do you do in these testing times?

2. Hold on to your portfolio. Do not panic and sell:

Selling a portfolio should generally be your last resort. Don’t do it. Hold on. This situation arises when all other emergency funds are depleted, or if the portfolio was built using borrowed money. To avoid putting yourself in this situation. Ensure you have a stable source of income, diversified investments, and a well-established emergency fund before investing in the stock market. 

3. Best Time to go for Value investing for wealth building:

When it comes to wealth-building, value investing can be a powerful strategy. Consider making an additional lump-sum investment when the market is at its 5- or 10-year lows. At these times, high-quality stocks may be undervalued. This offers an excellent opportunity to enhance your portfolio. Forget all your investments and capitalize on the situation. 

4. Time to build a high dividend yield portfolio in a down market:
   A down market gives you an excellent opportunity to build a high dividend yield portfolio. Stocks purchased during these times often provide attractive dividend yields. So, focus on selecting companies with a history of consistent dividend payments. This will ensure a reliable income stream when the market recovers. Value Stocks are good Dividend Providing Stocks also.

5. Seek professional advice:
   If you can do it yourself then do it only in 20-25% capital as you are interested to do for remaining capital seek Professional advice. Don’t Gamble to Make wealth. Invest Mindfully with professionals. If you’re unsure about how to navigate a downturn, consulting a financial advisor like us – ABJ Finstocks can provide valuable guidance. We can help you avoid emotional decisions and ensure your strategy aligns with your long-term goals. 

With ABJ Finstocks by your side, you can be confident and keep staying afloat in the market even when the market is down!

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