As Russian tanks move in on Ukraine, so do EMIs on our salary accounts. And don’t even get me started on inflation, commodity shortages and Sri Lanka’s Economic Dilshan moment. Their dilscoop of switching abruptly to organic fertilizers did not quite have the climate change they were looking to avoid. In fact it created a whole new climate that one can enjoy with 10 hour power cuts. And lines for bread longer than the trailing commission of insurance salesmen. But we are now deposited on the shores of volatility, a lot like the Mumbai Indians this IPL. As markets go through the rise and fall of investor emotions, one is compelled to ask the question “Where do I see myself in 5 bear markets?”
Here are some tips to stay calm:
Ignore all advice from neighbourhood uncles: Now this would be true of their advice on everything from extramarital affairs to weight loss tips. But a special place of ignorance for your peace of mind is to ignore their stock market tips. “10 ka 40 ho gaya in three months” they will tell you. When you realize they were referring to their cholesterol levels, you might have to get your own blood sugar checked. So it might be a good idea to hedge your bets by also investing in medical diagnostic companies.
Buy the dip: This advice is not for your stock holdings. It is for you. You jump at the opportunity to acquire batata motors when it falls below 400 because you think the stock is now available at a bargain. But one small setback in life and you declare yourself degraded to B group shares. Have some faith in your own dividends. It will reward you. Just like your investment in Play3m.