This is an article which I hope serves as a warning for you. When the market falls down fast – from say 42k to 27k, most of us are caught by surprise/ shock. Even those who had gone short at 42k may not have waited for 27k to cover their positions. It is technically impossible to do so.

However, the most important thing to do now is to wait. Of course it is a good time to sell off the bad shares (or funds) and invest in good shares/ funds. Assuming that is done, what you have to do is wait.

However the following things that you hear / read is likely to move you from the “I will stay here path”. …here…

1. If you had invested in PPF you would have got better returns over 10 years.
2. Indian Banks lost Rs. 500,000 crore in market capitalization over 3 weeks.
3. Mukesh Ambani and Azim Premji got poorer by X,000,000 crores!
4. Government expects to see a 30% drop in GST collection
5. Seven years gain wiped out in 4 weeks
6. Even your 6 year SIP is now in the Red
7. If you had sold your ESOP and paid off the housing loan….
8. Always repay the home loan before investing
9. You should always book profits regularly
10. If you had sold….

who will tell you all this?

Well your parents, brothers, friends, cousins, inlaws, and of course media, bloggers, relationship managers in brokerage firms.

Just a warning here – none of them have a stake in your wealth creation

If you have been an investor for the past few years (or decade) you will realize the following –

a) a bear run follows a bull run

b) this too shall pass

c) if you have the money for investing, it is a good time to add small amounts regularly

d) adding is great, but not adding and just sitting tight is also a decent thing to do

e) normally all that we know is already in the price

f) the market goes up (and down) a little ahead of its time.

g) In retrospect, obviously market was over valued at 42000. Obviously, now it is cheaper

h) market can recover in 6 months, 1 year, 18 months,….35 months…WE DON’T KNOW

do some meditation, Stay calm.