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Tuesday, November 15, 2016

it ain't about how hard ya...

Markets are spooky these days. Nov 8 has been quite eventful what with elections in the US and demonetization in India.


From Nov 1, the index has fallen 6%. Much of that (5%) came after that eventful 8th day of Nov. 

Other things remaining same, investors go where there is less risk; perceived risk that is. Foreign investors could go to the US perhaps; but for how long would they remain there? Domestic investors could go to government bonds (would they?), or gold (again for how long?). They could go to real estate, may be, but chances aren't that high.  

Investors often fail to ask a question fundamental to their financial wellbeing, has anything fundamental to the business changed which is likely to remain for long?

With US not growing as much as it would like to, Europe and Japan, not anywhere, Latin America struggling, and China trying to check where it is heading, I reckon eventually a good portion of global money has to come to India. I mean it is for their own good, if they want better returns. And domestic investors will not like to sit and watch others party. So there is; the Indian equity markets are not going to be short of cash.

Short term fluctuations in the markets are routine. In fact, these are the opportunities to act. Real money is made when invested for long term. That is why investing calls for proper analysis and homework before action. Without analysis of facts there is only speculation; and one should speculate at one's own peril.

Often, men and women, tough and weak, smart and foolish, are all brought down to knees by the markets. What's to be done, take the hit and go back? In these times, investors should go to Rocky Balboa for advice, rather than to the so-called experts. 

Yeah, it ain't about how hard ya hit; it's about how hard you can get hit and keep moving forward.

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