Posted By: Admin
As the year draws to a close, it may be a learning to understand the kind of mistakes or errors that we may have made and how we may learn from them.
While the year 2020, taught us that the equity markets and in fact the global economies are fragile and can quickly collapse at the first sign of trouble, we also learnt that if one had the patience, the markets would recover. Since Dec 2020 onwards when the markets topped the sensex of 47K despite the pandemic, we have been living with the fear that a correction was due any minute, which is yet to come, in the meanwhile we have seen the markets go up another 25% in 2021. So trying to predict the market's drop has been a bad business.
Antidote : If you have the heart for Equity investments, then you must be prepared to stay with some volatility else equity investing is not for you.
In late Feb 2020, we learnt about Covid 19, and March saw a global lockdown that was unprecedented. So things moved very quickly. However, now almost 20 months down, doesn’t seem to have changed a lot, we now have a new variant we have seen, Delta, now seeing the Omicron ( they keep coming like Marvel super hero films). With a large majority of the global population yet to be fully vaccinated, we can expect Covid & its variants to continue to scare the world for some more time.
Antidote : From an investment standpoint, stay diversified in various Assets , it’s the best defense against that can happen.
At the end of day it is important to understand that we are not super humans and never could predict the future. So quit that anxiety about what is going to happen tomorrow of which we have no control. Make the most of today and hope that tomorrow will be a better day. As we unwind from 2021 and await to welcome 2022, let us be grateful for this life and its many joys and hope that 2022 will continue to provide us with positive experiences and joy.
By Babu Krishnamoorthy, Chief Sherpa