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As we all are aware that Election Commission of India announced the upcoming Lok Sabha 2019 Election dates and result are to be announced on May 23rd, 2019. The very common question that I get from many investors is that “Is it right time to Invest my money in the markets?“
Before I tell you my answer, the only question that I have with all these investors is that Why Not? In last 40 Years of India there were 10 Governments, 6 Coalitions and still Markets went from 100 in April, 1979 to 38,000 as of March 2019. The basic principle of equity investing is that Growth Is Permanent & Fall Is Temporary.
The important thing to understand is that, In long run market value of companies or economy is totally dependent on the earnings of the businesses and what Government is doing to ease the business operations and increase the profitability by controlling various factors like Liquidity in the Economy & Costs of Borrowing for the businesses to do their operations.
It is but natural that if the Government will lower the cost of borrowing along with the liquidity, then there will be increase in the earnings of companies which in return will reflect growth in the market values of those companies and for Investors of these companies the growth can be seen in their Investment Values, if the government don’t do it the impact will be vice-versa.
Again, what is more important to understand in Investing is that even these events won’t last longer. That’s why it is always recommended to Invest for your Financial Goals not for the next market view.
There is nobody who aspire to compound the wealth at 12% CAGR for next 25 years and he is predicting the next market movement. The only message I would like to give you is, “Those who compound their wealth for long term, never predicts the Market.“
So, Your Money shall be invested every time in equity ‘ONLY’ if you’re investing for at-least next 10 years and you shall keep on doing it regularly whether through SIP or Lump Sum Purchases regularly without predicting the next market move.
Those who predicted last month that Markets will Crash due to Air Strikes by Indian Army and Border-Tensions expecting markets to Crash have now missed the 10% upside move markets made. So Stop Predicting & Start Investing Regularly.
Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
