It is amazing how most people cannot sit idle. Forget meditation, just sitting idle is impossible. They need an external stimuli – and as time goes by they need a higher and higher degree of stimuli.
When the market was at 19000 the IFA could not get the so called ‘sensible and well educated’ people to invest. Most of the people thought it was TOO RISKY.
Then the market went to 21000, again the reaction was – ‘there will be a mental block and THEREFORE resistance at 21000. So people thought the market will come down from 21000.
IT DID NOT.
Then it went to 25,000. They were assured by the fat cats who came on TV that at 25k our markets will be expensive and therefore it would NOT be worth investing. They were told that the FII has the whole world in which to play, so THE FII WOULD not buy India.
Well 25000 fell by the wayside and 7700 on the Nifty sounded possible, and he it did that.
The poor IFA is now answering the following questions:
– should I book profits (at least partially) – even from well educated, well meaning, customers who do not know the RISK of Not taking Risk.
– why should I not sell all my mutual funds and use the money to buy another house by taking a loan. AFTER ALL Real Estate prices cannot fall.
– markets are going up, should I continue my SIP?
– IN 2011 the same people were asking ‘markets are going down, should I continue my sip?
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