We’re somewhere in the mid of the elections with 3 out of 7 phases over. Tomorrow, 4th phase of the election would vote.
The strategy as usual is going to be simple, logical & smart.
1. Have 5-10% cash in portfolio to utilise dips, if any, as an opportunity to accumulate.
2. Stay light on leverage. Reduce & avoid leverage before going into a highly volatile event.
3. Don’t panic sell & go away, especially if you’re a long term investor.
4. Continue investing as normal course. Let the SIPs continue. Let the monthly stocks additions to portfolio continue.
5. Watch less of political debates on TV. Read less of news, exit polls, opinions. The less the better. All this chatter only messes with one’s head. Spoiling one’s crucial thinking process.
6. Stay invested. Elections come & go every 5 years. If your goal, like me, is to stay invested for decades to come then it’s a non event in the large scheme of investing. You’ll see approx 5-10 elections in your investing career. (I’ve been into 3 already).
7. Indian markets will head higher in next 5 years, with all the ups & downs, to all time highs. Irrespective of what happened in 2009, 2014, 2019; the stock market continued it’s rally to all time highs. In each of those terms.
Follow the systematic approach to investing.
And you’d be on the way to building generational wealth.
As you always do. Thank me later.
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