Investors have short memories and wish to dissect market phases based on what suits their sensibilities.
Current hot topic of discussions on Social Media:
How Mid and Small Caps have delivered stupendous returns since March 2020
Current hot topic of discussions on Social Media:
How Mid and Small Caps have delivered stupendous returns since March 2020
What they have conveniently forgotten is their recent past experience of investing in Mid & Small Caps from Jan 18 to Dec 19 and till Mar 20
Above table shows entire journey of same Indices over different time periods vs 2 popular DAAF schemes and vs Smart Solution of MisterBond
Above table shows entire journey of same Indices over different time periods vs 2 popular DAAF schemes and vs Smart Solution of MisterBond
Many have questioned our exit from Equity in July 2020(after entries in March 2020):
As @morganhousel has mentioned in his book:
It is not being conservative but creating Margin of Safety. This raises odds of success at a given level of risk by raising your chance of survival
As @morganhousel has mentioned in his book:
It is not being conservative but creating Margin of Safety. This raises odds of success at a given level of risk by raising your chance of survival
It would have been extra conservative if one had invested in Liquid with 3% returns vs 100% in Equity.
My strategy has delivered from July 20 to May 21, 50% +/- returns vs 100% in Equity and currently sitting on 40-50% cash
My strategy has delivered from July 20 to May 21, 50% +/- returns vs 100% in Equity and currently sitting on 40-50% cash
Again as @morganhousel has put it:
No one wants to hold cash in Bull Markets. But if that cash helps you not to sell your stocks at huge loss in bear market - holding that cash is worth it
No one wants to hold cash in Bull Markets. But if that cash helps you not to sell your stocks at huge loss in bear market - holding that cash is worth it
So my suggestion is do not look at returns in different Indices in isolation but as a larger picture and journey. Correlate with current fundamentals
Do not get trapped in same situation like 2018 when most Investors invested in Mid & Small Caps based on past 1 year performance
Do not get trapped in same situation like 2018 when most Investors invested in Mid & Small Caps based on past 1 year performance
Investors conveniently forget teachings of legendary investors like #WarrenBuffet in Bull Markets and remember them in Bear Markets:
1. Rule No 1: Do Not Lose Money, Rule No 2: Do Not Forget Rule No 1
2. Be Fearful when other are Greedy and Greedy when others are Fearful
1. Rule No 1: Do Not Lose Money, Rule No 2: Do Not Forget Rule No 1
2. Be Fearful when other are Greedy and Greedy when others are Fearful
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