Going is good
“When going is good even bad looks good”
– Anonymous.
This statement sounds valid for the current situation in the stock market. Market is reaching new heights every day and some people are thinking about the bullish market to the next few years. Investors are very optimistic about the market when reality is totally different. Yes, we have seen few good signs of economic recovery but still lots of damage happened and economic condition is yet to reach the pre COVID level.
Market has proved that no one can predict the market in the short run. When market was 33% down from the peak in the month of march, experts were expecting further downfall but reverse happened. Similarly, people are expecting bullish market now but reverse can happen. Not only during COVID pandemic time, many a time market behaved irrationally. Nobody knows, is there a multi-year bull run or not? So, it is not wise to stay away from the market also.
My advice to the investors is better to focus on your goal rather than timing the market. It is the time to follow conservative investment strategy with help of margin of safety. So, don’t run away from market since it is expensive and disconnected from the reality.
“Save, Invest, Spend and Be Happy”
