Elections over. What next? World Cup? Confusing events and investing

A friend called to say now that elections are over, can he start investing as markets are up. I get asked questions like these all the time, Think about would you decide what do with your career based on elections? Does your dentist say you need a filling but lets wait for election results!

Above examples sound funny, postponing investing based on events like election is not only not funny but injurious to your wealth too ! A simple way to invest is when you have money and wait for a decade and then sell if need be or withdraw partially. A better way would be to invest methodically monthly via SIP or STP and get your asset allocation right. And let the magic of markets and compounding do its work patiently.

It is fine for traders to take event based decisions be it elections or anything else but investors need to keep calm and invest rather than wait for events to be over. Future is never clearer hence it is better to invest and wait rather than wait to invest and miss the bus, train and flight !

Happy weekend !

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