An intelligent investor was once asked what the market was going to do. He replied, “It will fluctuate”. This is the most important possible truth. We need to get deeply into our bones the sense that any market and the stock market, moves in cycle so that we will infallibly get wonderful bargains every few years and have a chance to sell again at ridiculously high prices a few year later.
Here is some observation how people at different age groups are reacting to the markets now:
People in their 20’s are logging back into their wealth front accounts to dial down their risk setting when they should be dialling up their regular contribution amounts.
People in their 30’s are trying to keep up with what’s going on, even though they are utterly bewildered every time an app on their phone buzzes to inform them of the latest global sell-off.
People in their 40’s and 50’s don’t necessarily know whether or not they’ve got a plan in place, or they don’t adhere to what the plan dictates because there’s a weak advisor at the helm.
People in their 60’s and 70’s are blown away when they look at their statements because they’ve allowed someone to talk them into “fixed income alternatives” like junk bonds and many other risky products which don’t act very bond-like at all.
The rational way for investors to be thinking about the correction-turned-bear market, most investors haven’t quite arrived at these realizations in time to coincide with where they are in life.
Every fall in the market is an opportunity to earn.
- Between April 2000 to Sept 2001 Sensex was down by -53% and after recovery it has given 113% return.
- Between Jan 2004 to May 2004 Sensex was down by -27% and after recovery it has given 37% return.
- Between May 2006-June 2006 Sensex was down by -29% and after recovery it has given 41% return.
- Between Jan 2008-March 2009 Sensex was down by -61% and after recovery it has given 156% return.
- Between Nov 2010-Dec 2011 Sensex was down by -26% and after recovery it has given 36% return.
- From 2011 you are already witnessing the mother of bull run 🙂
Stop worrying and Start Investing – There is no right time to invest
Whenever you have money that is the best time to start