Kill Your Demons

kill-your-demons-shyam-sekhar-ithought

Every Diwali, as Muhurat trading nears, hope fills our hearts, optimism swells about tomorrow, and a feel-good factor pervades. If you are an Indian investor, this sentiment is universal.

In an economy that has grown from weakness to strength, then from strength to weakness, and again back all the way from weakness to strength, this is not unusual. The true long term Indian investor knows the potential of our story, the power of the economy and his positivity is well reasoned.

But, there are several investors who are in the market for other reasons. The most common reason is that other asset classes and markets are now not worth pursuing. They offer too little. This category of investors is possibly bigger than the committed, conviction driven ones. They are both domestic and global. And, it is this category which will decide between now and Samvat 2077 where our markets will be.

But, the investor with conviction should hardly be bothered. If you are in this for the long haul, then your conviction will be richly rewarded. If you are an arbitrageur or opportunistic investor, you may not make it. The demons in your mind can potentially destroy your pursuit for returns.

In the stock market, Narakasura as a metaphor is often an amalgam of near term anchoring, greed and speed. Try to kill these three demons and you have great hope. Wish you a bright and happy journey from hope to happiness.