The Hindu Business Line : Of markets and selective amnesia

Unlike professional traders who need to sweat it out even when all is doom and gloom, you can switch to hibernation mode and opt for selective amnesia of the markets.

Srividhya Sivakumar

Does the letter ‘R’ turn silent whenever you read the word ‘brokeR’? Fretting that you put a chunk of your hard-earned money into the stock market around its peak? Sulking at the fate of your very first ill-timed investment in equities? Worry not, for despite these dark and dreary days, there is a sunny side to your investment experience.

Reason to cheer

Take heart from the fact that even some of the most famed fund managers and seasoned investors have got their timing wrong!

And that straightaway puts you in the league of the ‘who’s who’ of the investment community. Now isn’t that some company?

There’s more to cheer about. Unlike your professional peers who need to sweat it out even at such ‘end of days’ times, you have the choice to switch to hibernation mode and go into selective amnesia of the markets.

Better still, while the fate of their cash coffers is directly linked to their performance in the stock market, yours is not.

So, the next time your broker or investment advisor tells you to think long-term when you quiz them on the prospects of your investments, don’t complain. You know you will always have the last laugh.

But how can you go into hibernation when the whole world around you seems to revolve around stock markets and investments?

The idea is simple — ignore the constant squawking of your broker, news channels and trader friends — and enter a state of complete isolation, where you are not defined by your investments. Here are a few suggestions.

Forget your trading password

If you are a tech-savvy online investor, for starters, try forgetting your trading password. And if that’s difficult, put in the wrong password thrice and your broker will automatically lock your account !

Alternately, if you are the type who places orders over the phone with your dealer (a person who once used to call you at least thrice a day and without whose call your day seemed incomplete), tell him you are taking a vacation and that you should not be disturbed for some time. Believe us, if the markets continue to go nowhere, your dealer is likely to follow your instruction to the T.

Expand your horizon

Have you noticed the tectonic shift in the way analysts, fund managers and even media think now?

From the famous one-liners such as “India growth story is great”, “Indian consumption story will drive investments”, they have now shifted focus to other macros such as “Crude has to fall”, “India’s deficit is a point of concern”, “India is no longer attractive”. Inflation and interest rates worries have come to the forefront.

While we are not suggesting that these much-touted concerns about the economy are wrong, we instead urge that you too go the ‘macro way’. ‘Thinking Big’ is the perfect diversion from crying for your portfolio-centric worries.

After all, when the whole economy is threatening to slowdown or, worse, come to a standstill, thinking single-pointedly about your investments alone isn’t very patriotic. So forget your own microscopic woes and instead look out for ways to save our economy.

Turn to page 3

If reading about the thrills and swirls of the market gave your adrenaline a push when the market peak was in the making, try reading ‘Page 3’ news in your newspaper. Doing this will renew your faith in the India story.

Besides, a look at the average lifestyle of the ‘bulge bracket’ (and even pocket!) citizens of our country, which these pages are dedicated for, may reinstall your confidence in the “changing face of the new Indian consumer” prophecy given by many economists, even of foreign origin.

While this can be quite a task if you have been attuned to turning to the ‘Markets’ page of your newspaper everyday, don’t lose heart. Ever heard of the phrase, “practice makes one perfect”?

Get a life

If you had earlier smirked at your friends who were ‘not in the markets’, this is the time to catch up. Go out with friends, give in to your urge to splurge and shop till you drop.

Not only will it be a welcome break from the world of stock markets, the fact is that by doing this, you will be contributing your ‘tiny drop’ to help the slowing Indian economy.

Alternately, if you are good at writing, try your hand at blogging or writing a book on your experiences in the market. While we do not promise your book will be a best-seller, we can assure you that sharing your investment grief can lighten your own heart and a few others’ as well.

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Of markets and selective amnesia