Running & Investing – Good Days & Bad Days

We all experience goods days and bad days in our day to day life. There’ll be days when everything happens as per our plan, and other times it’s not the case.

Every runner has been through this grind: week after week of great runs suddenly interrupted by one of the worst workouts in years, for no logical reason, it just wasn’t your day today!

Some ways to cope with the above situation:

– Dwell on what went wrong

– Instead, plan and move on, bad days will make you strong

Just like running, there will be good days and bad days in investing as well.

Let’s see what last 20-year data shows,  updated till 20 March 2020.

Graph

In above 20-year time frame there are equal instances of bad days and good days. However, every bad day time period is followed by a good day time period and vice versa.

Always remember “you have signed for volatility” and you have to develop that mindset.

Having said that , as an investor, you  must take cognizance of the fact that one  will have to live through both,  to create wealth in the long run that is aligned with the bucket strategy.

Stay the course – bad days won’t last long. Remember – mean reversion

Content – Ajeeth Kaushal

 


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