GET READY FOR MIXED RETURNS IN THIS ICC WORLD CUP 2019

Food for Thought

The ICC world cup has started and India has started making its mark. Next few weeks are going to be extremely exciting as match after match gets played. Not very different is with the squad of Team Modi. The expectations are clearly sky high and they should be after the GDP print below 6. RBI clearly delivered a decent policy. Market reaction was exactly not in confirmation with that, but from a debt market perspective it was a good one.

So, while markets wait for the budget to be announced and till than continue to bust stress by watching world cup matches. But for today, even I look forward to enjoying the match and share a few of my thoughts on finance not necessarily about stock markets.

• The hard truth is only around 3% of our population are in a position to aspire for financial independence. Don’t waste this rare privilege.
• Big money can be made through high savings, wise investing and lots of patience.
• The biggest asset one can have is zero debt.
• The greatest discipline in personal finance is living below your means.
• Early financial independence and early retirement are completely different. To me, the former is a blessing and the latter is a curse.
• The neighbourhood we live determines our life style & spending. Need to be careful in choosing one which matches our goals and personality.
• Paying minimum balance regularly on credit card is the maximum sign that you’re getting into debt trap.
• Bonds are for storing wealth and equities are for creation of wealth.
• As Ben Carlson says, emotions cannot be back tested. That’s why past bear market always looks like opportunities and future ones scary.
• Don’t think how it would have been if you’ve started 10 years ago. Start today and visualise how you would feel 10 years from now.
• Many are long term investors till next bear market.
• Don’t take aggressive bets. Take measured risk. Remember one blunder can push you back by a decade or more in terms of wealth.
• One sign of progress in individual investor’s portfolio is no churn or very less churn.
• Trying to get rich fast is a fool-proof way to lose what we have.
• Losing opportunities is far better than losing money. Don’t invest in fads.
• Making as much money as quickly as possible, is not an investment strategy. Unfortunately for most of us that is the strategy.
• Aggressive strategy cannot be a substitute for high savings. Save high and take moderate risk than saving less and taking high risk.
• The day we realise not losing is as important as winning; we would stop blindly chasing returns.
• Good periods are more than bad periods. By not timing, though we go through bad periods, do not miss even a single good period.
• We’ll stop looking for quick money the moment we consider stocks as businesses and realise that our wealth grows in line with business growth.
• There are periods of high returns, low returns, no returns and negative returns. We need to go through all these to get long term returns.
• Listening to market forecasts is not only useless but can be very harmful too; if you start acting on them.

If you would like to know more, kindly click here: https://bit.ly/2Ub9sS5

Happy Trading.

Cheers!!!