From a low in August 2013 to lifetime high in March 2014: What changed in 6 months?

On 28th August 2013, the Sensex closed below 18000 and the Nifty at 5285. Headlines in popular media went something like this:

– Sensex recovers after morning crash, ends 28 points higher, The Hindu

– Sensex drops over 500 points, Nifty slips below 5,150, The Economic Times

As always, when markets are down, most of media & analysts were painting red.

Keeping away from emotional reactions and staying put to the choosen model of investing, I was glad to buying that month. I wrote a few words of wisdom from legendary investors as a reminder and to an extent a confidence booster to stick with my plan. With years of practice it still takes some (ok, lots of!) guts to go against the flow.

Today is 24th March 2014. 6 months & 26 days later, the headlines are:

– Sensex up 300 pts to end at life high of 22055, Moneycontrol

– Sensex ends at record closing high of 22,055.48, The Hindu

missedopportunity

This is not another reminder to buy or sell! It is a reminder to

  • Do not react to that day, that moment. A day is 24 hours but over a period it is just a dot!
  • Do not be swayed by emotions
  • Do not take advice on TV seriously

 

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