We just entered the toughest Samvat in a long time. Investors always need to sense when the going gets tougher. And, those investors who actually sense it early get a head start.
The previous samvat was a dream. Never in recent history has it been easier to make money in equities. Every sector made money. Every theme delivered. Every medium, be it NFO or IPO or OFS were looking like quick return engines. Turnaround stories seemed like they were doing express delivery of returns. Nothing seemed difficult in the last samvat. So, what is the point here?
The point is simple. When things look too easy, it is time to experience the most difficult. But, we must realise that we have lowered our guard far too low. Our complacency in taking responsible investment actions is growing at its fastest. We are showing urgency only in doing all the wrong things. Typically, these are telltale signals of difficult days lurking ahead.
There is only one thing we can do. Go back to the drawing board. Detox ourselves of the loads of recency biases. And, start afresh all over again. This samvat needs freshness, objectivity, effort, and patience in truckloads.