With the financial markets falling, the common man is under a lot of pressure from rising inflation, lower salary hikes and with investments giving poor returns. So, here’s what an amateur investor can do in the current scenario.
• Commodity markets: - With the industrial production showing a negative trend and the finance ministry saying that the projected growth rate of 9 being a distant possibility, it’s better to shy away from the commodity markets as they are directly affected by industrial production and growth.
• Derivatives: - Derivatives being a challenging aspect of the financial market can take a lot of time to be understood by a person who is entering the financial market for the first time. With the traumatic market condition and a hazy outline as to what the future holds for the Global markets, it’s not a good time to enter the derivatives market.
• Try to sell your dollars: - With dollar looking weaker In the future, it does not look like a good time to hold on to your dollars. Try to sell it off when you can get a better exchange rate.
• Stock: - It would be a good move to exit the stock market and wait for the prices to stabilize if you are new to the market and don’t own any blue chip stocks yet. So if you are mulling over entering the stock market now, wait for things to stabilize.
In the current market scenario, there are two positive channels to invest, Gold and Fixed Deposits:
• Gold: - Invest in gold in the form of coins or bars. With the government across the world trying to increase their gold reserves because of the unpredictable US dollar, the gold prices will see an upward rise. However, be ready to sell your gold when you see the prices going down.
• Fixed Deposits: - With RBI declaring a high rate policy, Banks are offering higher returns on Fixed Deposits. Therefore, bank deposits are a safe bet now.
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