Conservative investors, who are quite recently exposed to equities, are quite apprehensive as to how their investments are doing in that particular sector. A slight change in the market can be the main cause of their depression. Any transfers reflected from such changes, can result into loses that can be quite undesirable, forcing you to opt for a personal loan or home loan etc, amidst the exorbitant interest rate charges, to fulfill your financial requirements.
For this reason, it is very important to concentrate on the total allocation of your resources in your portfolio rather than only the equities aspect.
But, portfolio re assessment and re balancing is what is required to be carried out by prudent investors at least once each year. If there is a considerable deviation in the company’s fundamentals, then selling off the stocks will be a prudent decision. Also, when valuations become impossible to justify based on future projections of earnings, it is a good enough reason to sell the stock.
Analyzing the current market cycles, investors are advised not to be very hopeful of the markets’ ups. Since, downfalls are quite expected. In the short term, the companies are looking to rub against various macro level pressures, specially the inflation. But, after a period of 3-5 years, the problems seem to be manageable. So buying the right stocks and watching the markets stabilize in the long run is what is advised.