This too shall pass

Source: Outlook, BSE Sensex Index, Social Media

This too shall pass

There is a lot on the news these days – from trade wars, terrorism, border skirmishes, and an upcoming election. A lot that would seemingly sound scary to an investor. In such situations, a little bit of historical perspective helps. History can help us better appreciate how resilient the Indian economy and by extension, the Indian stock market has been when faced with adversity.

The video above charts the growth of Rs 100 invested in the BSE SENSEX in 1979. Through multiple elections, wars, drought, scams etc, BSE SENSEX grew as a reflection of Indian industriousness and ingenuity. BSE SENSEX closed 2018 at ~36,000. That would be an annualized return of ~16.3% over 39 years. Of course, SENSEX did not grow in a straight line, but it would have been close to impossible to predict the high growth periods from the low growth or crash periods.

So, stay true to your investment plans, stay invested and remind yourself  This Too Shall Pass.

 

#WhereTheSmartInvestorsAre

Getting itchy to sell your funds or stop your SIPs. Check what the #SmartInvestors are doing first! They are sticking to their long-term plans.

To do nothing at all is the most difficult thing in the world, the most difficult and the most intellectual. – Oscar Wilde

We have published extensively on how to manage market volatility for better returns. You can read some of them again here –

 

Happy reading!

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