A year on..
One year is a long time in life and markets, on 24th March 2020, India announced a 21 day lockdown, if anyone thought normal was boring, it made us crave normalcy.
Sensex crashed from 41ooo to 27000 in a matter of one month and lost 35% value, at the height of the panic on 17th March, We sent a note to clients as follows
Hello,
Usually health and wealth of ourselves and our loved ones are the two most important things for anyone. This pandemic threatens both health and wealth temporarily, In this time best is not to panic, just as isolation keeps us safe from the virus, not doing anything in haste will keep us safe from markets too and when the tide turns as it surely will, both health and wealth will not only return back to normal but with a new sense of appreciation for life itself,None of the past events have had any permanent damage to the economy in the long term and this too shall pass. Stay safe and along with social distance, keep social /business media distance too !Reach out to us for any information / query you may have,
Today a year later, economy is even better than before the pandemic. so wealth of our clients has not only come back but it is above last years levels too. One of the best things most of our clients did was practise social distancing from their investments as well, helping them a lot. This is perhaps a key to investment success, avoid seeing portfolios regularly, compare returns, move from X fund to Y fund etc. As Warren Buffett said, the game is won by players who focus on the field and not on the scoreboard. The score board is an outcome of what’s going on the field, and is not the game.
Sadly health wise it has been an ordeal for many of us and hopefully with vaccination catching up, we can breathe a bit easily.
As we close this financial year 2020-2021, we need to remind ourselves that good investment returns is about avoiding panic in bad times, not being greedy in good times and maintain social distance from portfolio most of the times 🙂
Hope Financial Year 2021-2022 gives us a normal year both in markets and our day to day life. As it is written on back of the lorries, “Be safe and maintain distance”.
Regards
Shankar