LET'S JUST NOT BE FEARFUL
October 11, 2018
In our view, markets will settle over time and until then one has to ride the volatility, and for the long-term equity investors, it’s the time to remember, the cliché ‘be greedy when others are fearful’. We are not just sharing this theoretically, and, here is an endeavour to elaborate our view by addressing each concern that looks unfriendly:

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TEN INVESTMENT INDICATORS
Knowing what indicators move markets is nice but not enough. The real sense is interpreting these indicators and determining their likely market impact. In addition to the absolute level of an indicator, two other important factors to consider are the trend in the indicator and the market's expectation for that indicator. Taken together, these often determine the market's reaction to a given economic or market report. Learning to anticipate the market's reaction to various indicators requires careful monitoring of financial markets, as well as experience in interpreting reports.
TWELVE INVESTMENT RELATED
BEHAVIOURAL BIASES
It is unusual for investors to perceive on their own, a constant tug of war between their cognitive thinking and emotional response. Often, the emotional response wins because of an inherent human behavioral bias. It is important to ensure that cognitive thinking is not suppressed by emotional response especially for investments-related financial matters as investment assets grow only with right decisions and discipline.


FOUR UNETHICAL INDUSTRY PRACTICES
There are no financial products that can guarantee performance and/or returns but industry emphasizes on these aspects more than what client needs, as the approach is to sell (or mis-sell ) and not advise.
FIVE PORTFOLIO DISORDERS
Investor’s behavioral biases and industry’s unethical practices lead to portfolio disorders. These disorders lead to creation of sub-optimal portfolio. This in turn limits the portfolio's performance. Investor does'nt realize the impact in the short term, but in the long term, this leads to investor dissonance when investor understands the massive difference between the wealth created by his/her portfolio and what could have been created, had portfolio been an optimal. This is what differentiates wealthy and prosperous investors from intelligent investors. Your portfolio is also victim to one or all of these portfolio disorders and these are the reasons for its under-performance.
