Every three years in last 100 years, market delivered 20% return untill last 2022.
2022 to 2023, market delivered negative return in index, some segments are very negative.
Last year when I was discussing with a client who was highly concerned to see his investment growth under 7%.
I told him, market will definetely rebound and deliver our targetted returns but before that it will make following three scenarios.
1. It will test the patients of investor to the level he will think "FD is better".
2. Investors take out the money and invest in Real estate.
3. Market will make retail and day traders runaway home with little or no capital.
And, do you know when those people who turned away from market will come back?
Once market delivered 20% in next bull run. By the time they would have missed the 20% upside and buy the expensive market with FOMO bias.
FOMO?
Fear of Missing Out.
We have seen this cycle playing out time and again. This is going to be an another year of same situation.
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Data shown in picture is from S&P US index.
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