Shoud you wait for the markets to correct?

Opportunity lost for waiting to enter or exit the stock markets can be huge!

As stock markets continue to hit new highs, investors are confused whether to book profits or whether to continue SIPs or commit additional SIPs. When markets peak or have a free fall, it is natural for investors to have a myopic view as fear sets in. One of the most difficult things in life is to accurately predict the future. No matter how much technology has advanced and no matter how efficiently information is disseminated today, our human brain cannot look into the future. This holds true for the world of investing. So, what can you do about market movements that you do not have control upon? Nothing. Rather, focus on what can you can manage and control. Your discipline to stick to principles of long-term investing and wealth creation. Your asset allocation – money distributed in equity and debt buckets. Your financial goals. Unless you have any short to medium term goals nearing in at least the next 5-7 years or feel the need to rebalance your portfolio because you do not want to take risk beyond a certain level, stay invested. Continue your boring SIPs. Don’t do just one thing – waiting for the markets to correct!

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