It’s been a while, so it took Corona Virus to get me back to writing.
As recommended by the Doctors, please take all the necessary steps to stay safe, stay healthy, and keep people around you safe too by social distancing.
Recently, government ordered closure of malls, theaters, schools, colleges to avoid crowd gathering. But we saw exactly that happening at all grocery stores and super markets. People panicked, rushed to stores and thereby creating a more infectious situation, god knows how many got infected with this.
Same panic gripped the stock markets worldwide as well, massive short selling leading to a nose dive in the stock markets. Investors saw their investments eroded in a matter of few days. Reminds me of Lenin’s quote – “There are decades where nothing happens, and there are weeks where decades happen.”
We have been told that social distancing is the only way to avoid getting infected. So what does it mean? Put simply, the idea is to maintain a distance between you and other people — in this case, at least six feet. That also means minimizing contact with people. Avoid public transportation whenever possible, limit nonessential travel, and work from home and skip social gatherings— and definitely do not go to crowded places.
I think in the current hyper connected world, distancing yourself gives you an opportunity to slow down, reflect, and think individually and not collectively as is happening right now.
I think social distancing with your investment portfolio is the prudent strategy to follow in the current environment. Keep a safe distance, minimise your contact with your investment portfolio. If your asset allocation is in place, there is no need to panic, no need to touch it. If your asset allocation is skewed towards equity, even then there is no point in panicking, because nothing can be done now. Just keep calm and stay invested.
Distance yourself from the deluge of market information (just like information about Covid19). This can only lead to mass hysteria and panic. Staying away from this information will help you stay focused on your goals. It will give you a perspective on your individual risk taking capacity, prevent you from taking irrational and rash decisions, thereby maintaining the hygiene in your portfolio.
Most importantly, don’t be a carrier of information, causing more panic than there already is. There is enough and more information available on the internet for people to read. You don’t need to add to it unless you are an expert in that field and have an insight to offer.
In case you need guidance on dealing with COVID19, your Doctor and not your neighbor, is the right person to contact.
Similarly get in touch, Oops! Call your Financial Advisor for any insights, inputs or guidance regarding your investment portfolio.
Stay away from your portfolio, stay safe, stay on course, help yourself and your family achieve your investment goals.