Posted By: Admin
You are in the middle of the jungle on your trekking trip and suddenly you find a wild elephant charge at you from the thick over growth about 30 meters ahead. Your Adrenalin kicks in.. your blood flow increases, your heart starts pumping extra blood to help you in your fight or flight decision. Any seasoned forest ranger will tell you that the only way to come back alive it to stand your ground and stare back at the charging elephant and show your resolve that you are not scared. Any indecision or fear that is evident in your body movement or posture will have the elephant pick you up and throw you like a toy. This is exactly the opposite of what your instinct is telling you. Your instinct is telling you to run based on your caveman days when you could not have faced a saber tooth tiger without weapons. But we live in a very different world now, yet our instincts are honed based on our history of 10,000 years on this earth. It is time to change how you react to your instinct to live better in these times.
As in the case of the caveman, today the jungle called financial markets go through similar terrifying moments when the your instincts are advising you to take the flight and sellout and revisit when things return to normal. However what is normal, after Covid , we will live in a world that will seem very different from the world we used to live before Covid. So how will the new normal be defined. Like in the case of the Elephant charging, when financial markets are in turmoil, running away will leave you will stupendous losses and pain. So you need to have a ZEN like calm and stay your ground. Take sometime to allow for rational thought and also the markets to recover from the shock of its actions and then take a more rational move of what you see in the changed course. You must course correct, but wait for things to settle a bit and then make your move. Study the change before you act. Don’t react.
If you can’t control your emotions, you can’t control your money – Warren Buffett
So the next time you have a market in turmoil, take a deep breath, it could save you tremendous wealth.
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