III.4. Trading after strong instrument drops during crises.

Fig.98. Sberbank JSC stock during the fall in March 2020 A very good tactic is to buy much cheaper assets at times of falling markets in crisis years. In Fig.98, we see that the shares of Sberbank JSC fell in price by 36.7%. Then, after 10 months, the price reached the previous value, i.e. it passed 56%.

Fig.99. Sberbank JSC share returning to the previous price 10 months after the events of March 2020

The disadvantage of this method is the long waiting time for the right moment and the uncertainty of the time for the price to return to the target value. Also, the disadvantage may be the need for a long-term loan to maintain an open position for the entire duration of the strategy.

Fig.100. VTB JSC stock after the 2008 crisis Another example is with the VTB JSC stock. From December 2007 to February 2009, the price fell by 85% from t.1 to t.2. After 2 years, the price rose by 466% in volume 3.

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