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Showing posts from March, 2020

Market is simple: Market wants same from you.

Those who look stupid at first are often the ones who succeed. You don’t have to catch the bottom, nor the peak. If you can manage to buy ‘ anytime after ‘ a substantial correction, you will be very rich. Over time stocks make new highs, I don’t think it should be difficult to start. What are you waiting for? Equally important is to sell when things stop making sense. No matter how much the market rallies after you sell, do not buy again. “You don’t have to win first, you have to win last.” Unfortunately the nature of stock markets is such that you can never predict when things get out of hand (look at point 1 above). There will be 7-10 recessions over the next 50 years. Don’t act surprised when they come! The only way you can really prepare yourself for a stock market crash is by keeping some of your money in other asset classes.Everybody has biases. There is nothing wrong with that. I have a bias against gold so any investment other than stocks goes into safer money market