This weekend presents itself with a unique opportunity!
Two days of complete
introspection; two days when you can actually and officially cut
yourself off from everyone around the world and dwell into your self.
You can check what and how things in your life are actually beyond your control.
You
can also check your Financial preparedness and the effect that past 1
month has had on your reserves. When the market or any event is in
action one is not able to think objectively.
Not able to plan for future.
The Friday that was yesterday was starkly different from the previous Friday the 13th.
If you like to make any inferences out of it and draw lessons out of it, it would be hugely rewarding in future.
Point
1 : when you see the market going up you normally only check the
broad-based sensex or Nifty and declare when the market is up.
However
for broad based and an all encompassing rally or rise in the market you
must check the other indices also like the mid Cap and small cap
indices; Nifty 100, Nifty 200 and of course the Nifty 500.
If
you will check yesterday's induce, all across the board there was a 5% +
increment. This is actually very heartening. Because it shows that even
in the face of such adversity there was an all round interest in the
market.
Point 2: These incidents in the past month
or even the past week give you an opportunity to to check the beta of
your portfolio against the market conditions. Beta means that that for
one unit of rise in the market how much did our portfolio rise or fall.
Point 3:
This
is also the time to check the individual funds that you hold as to how
the rise and fall on daily basis against the benchmark index that they
follow. Mutual funds houses may adopt a benchmark which is more suitable
to their results but from your point of view you have to see where you
are getting better returns or are losing more money than others.
If
you will check the various funds and how they gained yesterday you will
find that index funds and the index ETFs did better than most of the
funds.
Finally of course if you wish to interact with me and other members of the group then this weekend is a better time to do it.
We can even hold video conferencing on WhatsApp for upto 4 people at a time.
Have a happy weekend and productive isolation.
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