Friday, March 27, 2020

CARONA SE DARO NA - 3 BACK TO THE BASICS





Greetings, 

Hope you are all safe in the confines of your home.
The CORONA virus is spreading across the Globe. What started as a “Chinese” problem has quickly capitulated into a “Global” problem.
Its something which hasn’t been seen by anyone alive till now. 

We have only HEARD but never seen. 



TRULY A BLACK SWAN EVENT !!






The unprecedented chaos, Worldwide Lock-down, has sent economies into a shock.
Its now LIFE first…”If we survive, we will think of money”.
It took less than 2 months for Humans to get into the mindset of MONEY IS NOT EVERYTHING. It can wait.
Even Olympics has been postponed (It was inevitable given the terrifying devastation that’s going around the World).
These events has proved yet again…..
1.    THERE IS NO STOCK MARKET GENIUS
2.    You cannot time the Market



So, is there anything at all which is like a light at the end of tunnel ?

Nothing, as of now…
However, what this shocking turn of events has however, proved that the Good Old SIP is still the best way to invest in the Stock Markets.
We all know, how it buys LESS units when markets are high and most importantly,  buy you MORE UNITS in falling markets (and huge number of units in these kind of falls) and helps us EARN
The humble SYSTEMATIC INVESTMENT PLAN (SIP) is the true blue MARKET TIMER.
Its buy low and sells high.

Markets have fallen earlier but not at this velocity.
Its has been ferocious, sharp and terrifying to say the least.


Just stick to BASICS. 

1. Don’t try to be either overcautious or over adventurous.
Do not SELL at these prices and turn your paper loss into permanent loss
And at the same time, do not jump and start ramping equity by putting your entire 100% at one go.

2 Stick to Asset Allocation. Don’t go overboard on debt or equity or any asset class for that matter.

3.   3. Focus on YOUR GOALS.
If your Goal is 5 years away….no need for you to tinker with your equity investments. If your goal is less than 2 years….strongly stay in Debt/arbitrage. Don’t become adventurous and invest in Equity to make some quick money.


Yes…we do encourage you to look at investing some part of surplus money you have as LUMP-SUM and at the same time, we strongly recommend that you take an Expert’s advise.

Is this the bottom ? 
It may not be so but it definitely is close to bottom is the majority of Experts feeling.

Once the vaccine is found for CORONA, (which is inevitable), sooner or later, the markets should start its Upward journey and it could be well like a Hockey stick graph upward.

Many MNCs are already thinking and moving towards closing their facilities in China and setting them up in India. A huge positive for India.

The stimulus package announced by Govt across the World and in India too has shown that the Governments are ready to help businesses stand up quickly on their feet and start running. Very good sign.

Don’t forget..
ALL BEAR MARKETS HAVE ONE THING IN COMMON…….THEY END” !!

We urge you to stay safe.
Spend time with family.
Meditate.
Read books (my recommendation would be DON’T RETIRE RICH !!)

BTW,
My SIPs are continuing and I did do so Lumpsum investments too.

Regards,
Srikanth Matrubai



Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH
Do read the book and give your valuable feedback and request you to post positive comments on the Amazon. https://amzn.to/3cHUM6M/ You can purchase the book on amazon and flipkart Please subscribe to my TELEGRAM channel https://t.me/MutualFundWORLD/

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