We all have this image in our heads of investors as looking either like Christian Bale from The Big Short or like Gordon Gekko from Wall Street.
These might have been true back in the time. Only men with a lot of spare cash and money had the time to invest in the Stock Market.
Well in today's Internet Era, the investing means have become so simple that you can start investing right away.
The recent pandemic has caused the Global Economy to come crashing down to almost 30-40% of the value it held last February. The crash has caused a lot of panic and led to people withdrawing the investments with an immediate effect. Was it the right thing to do.? Yes / No.? Well that depends on the below mentioned scenarios: (The below figures are precisely for Indian Indices):
- Did you Redeem the entire portfolio before the market was about to crash i.e mid February 2020.? If Yes, A good decision was made by your Financial Advisor.
- You managed to stay calm and then realized that its too risky to stay invested and withdrew all of it at a 30% downside. Well I'm hoping you aren't that person as it would be the worst investment decision ever made. It's time to re-think your Financial Advisor.
- You withdrew all in mid Feb 2020 and invested more in / around May 2020. Even though it's an impossible task to predict the bottom or base of the market, it would be the best decision made.
Opportunities like these occur once in a lifetime and help you pick the blue chip companies at cheaper valuations.
Always remember the stock market is the process of transferring the money from the impatient to patient.
So when is the right time to start investing? NOW!!!!
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