What to do When Stock Market is Falling

There are rumours all around the globe of another economic slow down like that of 2008 because of debt crisis in Europe and America. Because of this fear of economicSlowdown, each and every investor is filled with fear “how to approach further to his investment plan”. Here in this article I am going to help you how to act further in your Financial plan to achieve your future financial targets

The present situation is a cause of concern for the whole world. It is hot topic which is being discussed among at various places and time. Is world is going to see another situation like that of 2008 crisis which are triggered by the meltdown of America (lehman brothers and others). But know the situation is even worse than that in 2008, at that time banks defaulted and government came out For their bailout but in present scenario it is government which is at a verge of defaultAnd if a country’s govt is not able to the loans or debt taken by him from people than in such time who is going to come with a helping hand for the government.

Markets all over the world have fallen near about 20% in last one year period and even at that levels there are not even a single sign of relief that is they are going to hold at that level and not in a mood of further correction. In such time when stocks are available at cheaper levels how an investor should react in such a situation because no one can judge the markets.

The risk and reward ratio is always their and it is true that
When you strict to stock market in bad times you will get rewarded handsomely. Invest at present level small portion of your wealth at present level and wait for another 5-10% drop in index if there is further correction. Investing at present level is helpful because if markets recovered from present level in other words markets had hit its bottom and one could come with a hand full of profit.
Financial planning consists of various steps which one follow to achieve his goal of wealth creation though planning and decision making at right time. First step is to take a adequate amount amount of insurance cover for you and your family. Their after invest a fixed amt in stocks or mutual fund through sip. Invest in a diversified portfolio consisting of different asset class including precious metals like gold, silver or in etf. How to tackle in such a situation keep reading my further up coming articles.