What should we do now.
“What makes the desert beautiful is that somewhere it hides a well.”
The mood is set to soar. Or, so it seems if you watch the markets moves. Somewhere, anticipation is riding high and the markets are dove-tailed deep into it. What one will definitely see is an end of the defeatist mindset, the emergence of new hope in the govt, positivity about the future and a will to make things happen. If the markets overreact next week it is understandably an outcome of great relief and greater expectations. A few weeks after, the stockmarkets will realign with the new reality. An investor must not trade into the euphoria of the coming week. Instead, he should calm act only where it is absolutely necessary. Sell what you don’t want to own. Buying can definitely wait for the euphoria to settle down. If by the twist of events and turn of fate, the election outcome fails to please the markets, we could see an overreaction. Be ready to buy if the market sells off . It is extremely difficult to keep calm in the middle of euphoria or panic. But, that is the test of your investment discipline and passing this test is what should weigh on your mind right now.
Investment Strategy: Let the dust settle . Don’t trade in between and get choked.