US Data trouble, down markets and what you should do?

7 сент.

NIFTY
There are serious concerns, Job data seems to be lacking showing that the job markets are not doing so well, job creation is falling short of expectations with data coming in

On the other hand Inflation data like PMI,CPI seems to be stubborn and even rising to reverse the smooth decline of inflation

Not saying this is going to happen but in my opinion, the possibilities of stagflation has to be considered if inflation rises further and job data keeps being laggard

Fed cuts might change the scenarios in the future but rn concerns might start to develop

What you should be doing?

1. Continue SIP unchanged and automatic
2. Hedge your portfolios by Shorting futures (Strong conviction), Buying Puts (Strong conviction and timing speed), Selling options (Moderate conviction but not sure of timing)
3. Look for quality fundamental stocks and keep buying the dip

We are nowhere near bear markets or even any correction, however considering the data, we have to be careful about not taking over levered positions in the market or selling puts at the wrong time, however, these dips can be used to find great stocks and invest cash at good prices

Warning: Invest in good stocks on a staggered basis so that if the market continues to decline, we can keep adding good stocks at even better prices.

Do let me know if your opinions are different from this, also if you hold any bad fundamental stocks which are overvalued, now may be the time to exit as these are the companies which will be mosty hurt with market corrections.