Running & Investing: Dealing with Cramps

Muscle cramps are a runner’s nightmare.

One moment you’re flying in your zone, and very next moment you’re hobbled in pain, your race goals goes down the drain.

There can be many reasons for this situation:

  • Dehydration or electrolyte loss
  • Altered neuromuscular control because of fatigue
  • Running at a faster pace relative to their current state of training
  • Chronic illness, family history, and certain medications

Each runner has different requirements, one needs to identify & implement appropriate solution which could be:

  • Right training
  • Hydrating well
  • Right fueling
  • Strategic pacing
  • Tapering

When it comes to investing, cramps have a different definition.

It can be defined as a pain or discomfort in the portfolio that can happen due to:

  • Inappropriate allocation of funds, portfolio overweight on particular asset class such as real estate or investing without purpose and so on
  • Liquidity crunch
  • No defined time frame or objective
  • Paying attention to market noises; TV, newspaper etc

Can these cramps in investment portfolio be avoided?

Yes, cramps can be avoided.

What can be possible solution ?

  • Have a BUCKET STRATEGY in place to meet your CASH FLOW requirements
  • Invest with a GOAL, MULTI YEAR TIME FRAME & VOLATALITY ( DIS) COMFORT
  • Do invest in what  that gives you sound sleep
  • Always remember – What’s good for Mr. Kumar MAY NOT BE GOOD FOR YOU
  • RING FENCE your assets
  • Have a LIABILITY and CONTINGENCY solution in place
  • Keep in mind, YOUR EARNING YEARS are FIXED, however EXPENSES will COMPOUND
  • Keep your debt in check –  ideally one should be DEBT FREE by age 45-48 yrs

There’s no right or wrong approach to manage investing cramps. One has to learn to make friends with cramps (Volatility) and treat these as market cycles.

Content : Ajit Kaushal

 

 


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