Dear Investors,
While you may come across prophecies of gloom and doom surrounding markets in the present scenario, market falls are normal as market surges.
Economies and markets follow cycles, which means after each fall, there must be a rise as seen after the equity market crashes of 2001, 2008, and 2020.
How you take advantage of these cycles depends on your investment behaviour.
If you’re someone who panic sells during falls and panic buys during bull runs, you will end up selling at low prices and buying at high prices, which is detrimental to wealth creation. On the other hand, if you stay invested amid bear phases, it can help take advantage of subsequent bounces.
So, if you had stayed invested through crashes like 2008 and 2011, you would have achieved sizeable returns in subsequent years, but if you had sold off your holdings in panic during these years, you would have exited at a massive loss.
Remember, wealth creation isn’t done in a day. It is the result of disciplined investing over the long term, which is only possible if one stays invested across market cycles.
This time, don’t let impulses govern your investing journey. Take matters in your hands and
#StayInvested!
Your Financial Advisor,
S. Koundinya