History starting to repeat itself…
Worldwide we are all in a lockdown and one of the best things we could do is to relax and rejuvenate ourselves for the years to come. Let’s learn something new, try something different, spend time with family and enrich ourselves.
March 2020 was quite a difficult month… In about 10 days the stock market fell dramatically. About 20% +/- falls are normal and do not warrant much action. Falls of about 35-40% +/- are crashes & they are rapid. Then there is always a pull-back rally and you are witnessing that right now; last three days and up 12%. Such drastic falls and recovery have happened all along the last 30 years of our markets. Earlier yesterday I was reviewing the last 100 years of American stock market history. The situation was the same. Most times the recovery period is between 12-24 months & things come back to normal. The important thing is to stay invested so that you can reap profits of the entire recovery.
Meanwhile try to keep calm, listen to some music, hold your nerves and relax. Once again remind ourselves that money invested into equities was for creating long term wealth. So short term fluctuations of a few months should not make us doubt our long term strategy. Money meant for short term goals is anyways into debt oriented instruments.
An interesting learning for many of us which makes maximum sense right now; If the holding period of our portfolio has been long enough (10 years+) you notice that it is still positive & with profits. Just that part of these profits have depleted. This is the beauty of equity. Add more and be prepared to see magic. That’s the holy grail.
All said at this time we are indeed waiting for a medical solution. We hope that we will hear positive news soon. The exact time of this is hard to predict; but then humanity has not only endured difficult times but also survived and emerged even stronger. That fact is unshakable.
Kartik Jhaveri
Director – Wealth Management
Contact: 022 – 40024043 / 44 / 45… What’s app on + 91 7977877924