Experts Advise Calm Amid Stock Market Crash
New Delhi [India], August 5: Experts are advising investors not to panic amid a recent stock market crash. Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, shared his insights, stating, “My advice is not to panic. The Nifty index dropped by almost 1,000 points in just the last two days. This is not a time to panic or sell your entire portfolio. Rather, it’s a time to buy some good quality stocks or ETFs, which are now more reasonably valued than they were last week.”
Goel explained that the US economy appears to be heading towards a recession, and the yen carry trade is reversing due to an interest rate hike by the Bank of Japan. This has led foreign institutions and investors to sell their emerging market assets to repatriate funds to Japan. Additionally, a bubble burst in the Nasdaq 100 and significant stock sales by US conglomerate Warren Buffett have contributed to the market correction.
DK Mishra, another stock market expert, echoed similar sentiments, stating, “The share market is vulnerable and directly impacted by international markets. During such volatility, retail investors are advised to stay aside and wait for the market to settle down.”
Nirav Vakharia, another stock market analyst, also advised against panic, saying, “Investors should not panic as the fundamentals of the Indian economy are strong. This correction is due to global reasons, including the US market, a strengthening yen against the dollar, and tensions in the Middle East.”
The stock market experienced significant losses on Monday, with the Sensex plummeting by 2,222.55 points to settle at 78,759.40, and the Nifty dropping by 662.10 points, closing at 24,055.60. Out of the Nifty companies, only five saw gains while 45 saw declines, highlighting the overall bearish mood in the market.
Doubts Revealed
Stock Market Crash -: A stock market crash is when the prices of many stocks (shares of companies) fall very quickly. This can make people worried about losing money.
Experts -: Experts are people who know a lot about a particular subject. In this case, Amit Goel, DK Mishra, and Nirav Vakharia know a lot about the stock market.
Investors -: Investors are people who put their money into things like stocks to try to make more money.
ETFs -: ETFs, or Exchange-Traded Funds, are like baskets of many different stocks. They let people invest in many companies at once.
US Economy -: The US economy is how money and business work in the United States. If it has problems, it can affect other countries too.
Recession -: A recession is when the economy slows down, and people buy less stuff. This can make businesses earn less money.
Yen Carry Trade -: The yen carry trade is when people borrow money in Japan (where interest rates are low) and invest it in other countries. If this stops, it can affect markets.
Bubble Burst -: A bubble burst is when the prices of things like stocks go up too high and then suddenly fall a lot.
Nasdaq 100 -: The Nasdaq 100 is a group of 100 big technology companies in the US. If their stock prices fall, it can affect the market.
Sensex -: The Sensex is a list of 30 big companies in India. It shows how well the stock market is doing.
Nifty -: The Nifty is a list of 50 big companies in India. It also shows how well the stock market is doing.
Fundamentals -: Fundamentals are the basic things that make the economy strong, like good businesses and jobs.
