You probably wonder everyday these days, about what you should do when the time isn't good or when things don't go according to your plan. The answer is difficult. And so, when you ask me what's the way forward given the savage correction of the market, I don't have an answer!
However, I do know this is a great opportunity. Equities as an asset class will never disappoint you if you have the patience.
What should you do?
If you have money to deploy then use it in small parts, aggressively.
What should you do then if you don’t have the money? It’s time to learn and its time to earn. It is time to focus all your efforts in creating money so that it can be effectively used to create wealth.
How should you do it?
Step 1: Look away for a while
1. Avoid looking at the stock market each day; it'll only make you feel miserable.
2. Take stock of the liquid cash you have.
3. Think about how much more you can generate and how fast.
4. Channelise your energies towards improving your cash inflows.
5. Focus on your work more, learn something new, develop newer skills and think about how your monthly income can improve.
Step 2: Recharge yourself
When your business is going through a rough patch, take your mind off your business and reboot yourself to come back with renewed vigour.
Let me do some fortune telling here.
Today, you have got money stuck in the markets at huge losses (assume this money is in fundamentally good stocks and mutual fund schemes). Give it some time, may be some months and the money will take care of itself. Meanwhile, the new money that you have been earning and thus investing aggressively will also start rising gradually as the tide turns.
Imagine you having a double treat. The already invested money has not only made up for its 'on paper' losses but also the extra money that was invested during the market slump has created valuable assets for you.
Don't wait for this next wave to reach unrealistic heights and then decide to ride on it. Get on board now and let the next wave be under you, so that you can ride it in full control.
Like former Cricketer Sunil Gavaskar once said, "In tough times ordinary men do what they can, but a master does what he must." So do what you must, considering this is not the time to sit back and make money but its time to 'earn' it.
Disclaimer: The contents of the above articles are the intellectual property and copyright of the author, Kartik Jhaveri. No part may be used or reproduced in any form or manner. If you choose to act upon the information contained in the above article it is at your own risk. This article is purely educative and you are strongly advised to consult an expert prior to taking any significant decision.
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