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This too Shall Pass

  March 16,2022

This too Shall Pass

Dear Investor

Good day!

The impact of Corona Virus in the world economy and our stock market is very difficult to predict. The challenge with corona virus impact is colossal and it is lightning-fast. It’s devastating effect (not seen before) on the market will not be categorized as volatility, but a severe turbulence.

Media in general hardly reports good news. Many victims are fully recovered and it clearly shows it is not a deadly disease. If someone is in quarantine, in a couple of weeks time, chance of cure is very high, but this news was not spread!!!

Now, some of you might ask, if your portfolio value will hit the lowest ebb. In the last one month, we have not heard any news saying that some of the branches are closed down or any lay off. Number one company Reliance Industries share price has fallen nearly 31%.

When you are in dire need of money in the next couple of months, do communicate to me so that I can make the needed arrangement for the withdrawal of funds to the extent of your requirement. Out of sheer panic, if you take out fully, you are converting your notional loss to real permanent loss, which would be a very hard hit to get back to normalcy.

Reiterating one thing, whatever goes down fast will also come up very fast. Especially if the fall is based on some exaggerated news or events it retraces its path once the event ceases to exist.

With the recommendations of the medicos, all the media suggests that we are in the 2nd phase and maximum in a month’s time this Corona will loses its vigor or no one will even talk about it and it too will be a history. Till such time, it remains unpredictable and it is anybody’s guess how much its impact be further.

Sometimes, in pursuit of constant improvement, we imagine ourselves as Milkha Singh, but run aimlessly without the goal post thereby burning our self. So, stay composed and stagger your investment till Corona virus FREE world.

Gold price also keep coming down internationally from $ 1,704 on 9th March to $ 1,457 today 16/3/2020 which is -14.5% fall. In India rate per gram coming down from ₹ 4,208 to ₹ 3,943 which is nearly -6.5% fall. It has fallen less because of our currency depreciation as well during the same period.

From 01/01/2020 till now, the crude oil price has come down from $58 to $29.74 This will be a great boon for our economy which is hardly noticed.

Metal/Oil 09/03/2020 16/03/2020 Fall in %
Gold International Price in $  1,704  1,457 -14.50%
Gold in India ₹  42,080  39,430 -6.30%
  01/01/2020 16/03/2020 Fall in %
Crude Oil Price in $ 58 30 -48.28%

As far as India is concerned, we were affected later and we had ample time to start preparing well in advance to tackle this and hopefully this will vanish very soon.

As long as your investments are marked for long term requirements, no need to panic. Market needs one little ray of hope to bounce back. If you look at the market on last Friday, it fell nearly 3,800 points in 1 hour and it bounce back from -3,800 to 1,800 in a matter of 2 hours. This clearly demonstrates the ability of the market to pull back equally.

Tough times don’t last long and tough people do. It is high time for us to exhibit our grit and patience and we should never fall prey to this kind of market volatility. Believe me – you are a minority and the beauty of this investment is surviving in the best possible way amidst of this volatility. While honestly, every one of us are quite aware of this, when the fall is deeper than our anticipation, it hurts badly. I can understand every wee bit of your pain.

As a financial consultant, I am morally responsible for all your investments and am answerable to 1000 plus clients and my investment is also in the same market which tells you that my skin is very much in the game and this mutual fund industry has 28 Lakh Crore spread across 5 Crore investors like you and me, already subscribed for 8,500 Crore SIP per month irrespective of the market movement. Hoping for the good days to come sooner than later. I would always like to be your sounding board, whenever you need guidance or hand holding and you can always count me in.

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