Russian invasion of Ukraine has sent stock markets on a spin across the world and Sensex is no exception to it. Compared to 23rd of February, Sensex is down by 5%.
There are indications that stock markets across the world will continue to be under strain as invasion of Ukraine does not seem to end soon. Also as a consequence of this oil price is spinning out of control and currently trading at around $ 113 per barrel (29% increase since 23rd of February) which in turns puts in a big pressure on margin of corporate's which in turn affects the stock markets significantly.
Drop in stock markets and with oil prices not helping it either there is severe under current for all investors who are losing quite a lot of money on the markets. This is where the balancing act has to come into play.
Considered as one of the safe investments during crises gold has always traditionally played a pivotal role for investors. Gold since 23rd February has increased by 4%.
Investors in gold have gained during the period when Sensex & Oil are wrecking havoc.
This trend helps us to understand the basic principle of balancing portfolio of investment. It is not wise as an investor to have one type of investment it is advisable to spread portfolio. It is always recommended to have gold around 20% to 30% in one's portfolio to have a balanced return.
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