It is winter morning, and as you sip down your morning beverage, glancing through the newspaper, your eyes are glued on a particular incredulous piece of news that steals your attention- Sensex at 70k and Nifty 50 at 21k. Finally happy times for the bull investors. The anticipation of Sensex reaching 70,000 points was already built in 2023 when it previously crossed the 65k mark.
Experts say Indian markets are ecstatic and seem like that is the closest human emotion the current stock markets resonate with. The ones who were always bullish on the Indian markets in the last few years finally witnessed their faith being repaid with an exemplary Sensex rally of 5k points from 65k to 70k in less than six months. And, that makes this an ideal Happy New Year news. However, as investors, it is common to flow with the feelings or sentiments of the market.
Stock markets are cruel but investors need to immerse themselves to witness things fall into place and understand the importance of being present at the most righteous moment. So, how do you find balance in this unpredictable market? It’s simple- with Zen.
Investors are like those boughs of the trees that stand tall and rustle with the winds but are always looking for survival during a storm. The incongruous varied outcomes in the stock market can bring out rampant emotions among investors but there are ways to deal with them. You can be elated, sad, disappointed, betrayed, moved, or happy but that's the vicissitudes of being an investor.
In the world of investing, where volatility and uncertainty reign, it is important to establish your goals and financial milestones that will be reflected in your investment techniques and principles. At Sinhasi, our investment approach, aptly named the "Zen of Investing”, encapsulates symbolic principles that guide our path towards financial enlightenment and maintain Dynamic Balance at all times.
Sinhasi believes in Dynamic Balance that helps to PROTECT, ENRICH, and NURTURE our client’s wealth. We PROTECT our client’s wealth through ethical conduct, discipline, and compliance. We ENRICH their financial well-being through the application of wisdom, knowledge, and strategies that drive sustainable growth. We NURTURE holistic development by prioritizing their emotional and personal fulfilment alongside their financial success.
Investors always aim for higher returns on their investments in firms listed on stock exchanges. Chronicling their experience daily, they try to uniquely position themselves to win in the ebbs and flows among the sea of the companies.
Having a long-term vision is the only key when markets are highly volatile. Bouts of market volatility can be dismaying but sticking to your investment technique will help you overcome this myriad volatility. In life, you cannot control the level of suffering but through Zen, you can restrain yourself from reacting to it. It is advisable to follow your own investment thesis or consult a financial advisor who proactively guides you towards the goals and not push their agenda.
If panic selling is your instant reaction, when the stock market takes a plunge, then pause. It is the nature of the market to see the highs and lows but it is also important to be opportunistic. Zen teaches you to have dynamic balance that allows you to make rational decisions and see events as mere events and not as unnerving situations. Investors can change their outlook on dips and see it as an opportunity to buy fundamentally strong companies and redeem themselves in the plummet.
Investors often equate price falling as losses and the rebound gain as profits. There is a low phase and then there is a recovery phase. The regular ups and downs make the investors indecisive. Zen allows you to cultivate a mindful awareness and alertness of the present moment. In our approach, we stay alert to the ever-changing market conditions, seizing opportunities that arise and adapting our strategies accordingly.
Rebalancing your portfolio and following a disciplined, long-term approach to investing built upon understanding your risk tolerance is an ideal solution when the market is at its peak. When you find your Zen of investing, you will be disciplined and resilient in your approach. Sinhasi strives for continuous learning and improvement, leveraging our best-in-class knowledge and wisdom to navigate the complex investment landscape and unlock long-term prosperity.
Follow the best practices of 'Dynamic Balance for alpha returns' especially during volatile times!
We urge you to have conversations with certified financial planners who can help with your risk profiling and therefore asset allocation portfolio. They are in the best objective position to help you understand and mitigate the risks of letting fear get the better of you.
We can help you understand how to maximise your investment goals or leave a comment below on your thoughts.
Bibliography
How does Financial Planning work? | What role does Equity play in your Investment Plan? | Sensex @100K by 2025? Vijay Kedia says it is highly possible, THE ECONOMICS TIMES | Safety Measures to prepare for a Market Crash | Emotions and Investment | What Is the Prudent Investor Rule? THE BALANCE | 5 Essential Rules of Prudent Investing, FORBES
