Short Term is like Weather, Very unpredictable.
Long Term is like Seasons....reasonably predicatabile.
2018 was a year of mixed bag. In fact, was more of a Disappointment in terms of returns. But, the Indian economy did really well when other economies around the world are struggling.
When I look back at 2018, I am reminded of 1992, 1999 and 2007. I have seen this kind of severe fall many times...especially 2008.
Each of those years, the markets tanked big time and we re-learnt again and again that having a Balanced Portfolio makes sense.
Hand holding is of prime importance in times when the market is on fire (both upwards or downwards) and even though the Sensex/Nifty may show 6% UP...the MELTDOWN in Midcap and small cap of more than 24% has wiped out 2 years gains of most portfolio. And obviously, investors and not novice ones only....even the experienced ones....PANICKED.
Remember, No one has achieved anything in this world by panicking.
The years that followed all these BIG FALL year of 92, 99 and 2007 has made us learn and relearn that Wealth is created (rewarded, would be better word) to only those who stayed put and infact invested further during these bearish times, not only regained their profits but minted Wealth in just couple of years time.
These falls are more like a cold/flu which will disappear over a period of time. Sadly, many investors, consider these as some kind of a VITAL ORGAN failure and run away from them selling everything lock, stock and barrel even at a huge loss.
And, then tell everyone they know that Stock Markets is only a Gambler's den.
check this image and link....
All this by staying invested and increasing his investments.
Equities is Lifeline to Creating True Wealth.
And life has its ups and downs.
You dont get rid of life just because downs are more in recent times...you do wait...dont you?
REBALANCING IS VITAL ....DONT IGNORE IT
As you would have observed, I keep encouraging rebalancing your portfolio and this is only to ensure that the portfolio is less volatile and make good decent returns.
Timing the Markets perfectly is as likely as winning a Lottery, hence its much more prudent and intelligent to construct portfolio which ensures that volatility impacts the portfolio at the minimalist level and and growth too is completely captured.
Towards this, we at SRIKAVI WEALTH, are now encouraging our investors to strongly look at investing some portion of their money in markets outside India.
Portfolios with international equities have historically had increased return and decreased risk. Many times international equities zig when domestic equities zag.
Saving and investing for your goals takes perseverance and consistency.
And as the years go by and time passes, hard work pays off.
I personally would advise you to seriously start looking at improving your RETIREMENT READINESS.
In fact, this should be your primary objective for 2019.
One thing which I am forcing every single investor of mine to FOCUS on 2019 is ESTATE PLANNING.
Estate Planning includes your living Trust, Will and Power of Attorney.
Please do check nominee details in ALL your investments, insurance, Bank Accounts, Demat Accounts, etc
Especially Bank Accounts.
As I have observed that many would have opened their Bank accounts long long back and would have their brother/sister and in some cases, even their parents as nominees!!
As a Investment Professional, helping my investors prepare for and live your retirement is one of our highest priorities. With planning and discipline, retirement can be the best years of your life.
Wish you all the very best in 2019.
Remember, Equities is the BEST asset class to create True Wealth.
But, its full of volatility and requires not only deep knowledge but patience.
Hence, you are strongly recommended to contact a Good Proved Advisor and retire with Freedom...Financial Freedom.
Never, fall into the trap of Direct.
Dont become PAISA WISE RUPEE FOOLISH.!!!!!!
All the best,
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