How Should Investors Behave in Market Crisis

The Indian market has shown extreme fluctuation since the end of 2007. It went into sky high at 21000, slumped to the bottomless pit to 9000, and again came back at 20000 and now going down once again. The reasons are many.

Slower than expected market recovery in the United States and Europe, Inflation in India, Policy rate increment, and overall uncertainty in the global market. These events have created a confusing situation in the market. What made it worse was the downgrade of US credit rating by S&P from AAA to AA+ with warning of further downgrade if US doesn"t take strong steps to correct the situation. Media too is not very helpful as there are many opinions. Some analysts ask you to wait, some ask you to invest.

We will point out some steps that investors should take in the situation of crisis.