What to do with promotions now, when markets are falling
The beginning of the trade war caused losses to most investors who invested their capital in the shares of companies.
In a short time, the cost of individual securities fell by more than 30%, as a result of this event lost in cost, even portfolios with good diversification.
For example, my investment portfolio of securities went minus by -6%, and only gold diversification reduced losses to -0.3%.
In this situation, most investors are wondering - what to do with promotions now, when there is a global drop in markets?
To keep further, in the hope of restoring the price or urgently selling, no matter what more losses in case of response duties on American goods.
There are several options for actions in a similar situation
Keep on and not make sharp movements
In my own experience, but I know that exchange trading does not like sudden movements. If you did not notice the reason for the fall of the market in time, then after the fall it is too late, it is better to wait for the restoration or at least correction.
There is a high probability that the markets will recover. This can happen for a number of reasons:
- President Trump will cancel his decision to increase trade duties on the import of foreign goods. He made such a step in one of his speeches, if the fee does not bring the desired result.
- The impeachment of the president, many of the major financiers are not satisfied with the fall and can initiate the impeachment procedure, which will lead to the resignation of the current president.
- Four years later the change of president, in 2028, new elections to the United States take place, the new president can easily cancel the duties.
That is, the recovery of the market will occur within a few weeks to several years, because there are no fundamental causes of an economic recession, besides new tariffs.
In addition, the shares of companies that do not affect the increase in tariffs, as they are focused on the domestic market, have now been submitted.
Therefore, I would not be in a hurry, in this situation, to sell existing assets, fixing the losses received.
What to do with promotions - to increase positions
As I said above, not all shares have objective reasons for falling, now such companies remain promising:
| № | Company | Tiker | Sector | The reason for the purchase is now |
|---|---|---|---|---|
| 1 | Waste Management | WM | Services/disposal | Stable business in the United States does not depend on trade |
| 2 | Southern Company | So | Utilities | Low risk, high dividend, domestic market |
| 3 | Dollar General | DG | Retail | Strong demand in the conditions of economic instability |
| 4 | Lockheed Martin | LMT | Defense | Supply under state orders, are not subject to tariffs |
| 5 | Mckesson Corp | MCK | Pharma/Distribution | Strong positions in the US nurse, stable logistics |
| 6 | American Water Works | AWK | Utilities (water) | Monopoly niche, stable internal demand |
| 7 | Traactor Supply Co. | TSCO | Retail/rural household. | Stable business for farmers, minimal impact of duties |
This is a good moment to increase positions in such sectors as pharmaceutical, utilities, telecommunications. Well, American companies operating exclusively in the US market.
The price of price is the opportunity to buy securities cheaper than their real value, but you need to do this quickly until the price has recovered.
Take the ending
During the high volatility of markets, one of the best options for earnings is intraday trading in securities. Thanks to the credit shoulder, you can make good money on short -term transactions.
Trade is conducted through brokers for trading shares , thanks to this, the commission for opening transactions is reduced to a minimum.
Another advantage of such trade is that you can open short positions , and this is more than relevant in the falling market.
When responding to the question "then do with stocks now?" Choose an option that suits you more:
- If you are a long -term investor, then just wait out the situation
- If you have funds, then use the fall and bite shares
- If you want to make money quickly with a little capital, choose a daytime stock of promotions