@AdeParimal ⚡Simple rules which makes Investing easier:
Equities = Wealth
Gold = Ornaments
Insurance = Protection
Fixed Income = Regular Income
Real Estate = Home
But observed reality:
Real Estate = Regular Income
Insurance = Tax saving
Gold = Creating Wealth
Equities = Entertainment
Poor people always remain poor because they focus on SPENDING.
Middle Class people remain middle class because they focus on SAVING.
Wealthy people become wealthier because they focus on INVESTING.
Maturity is choosing silence when ego wants to hit back. Staying calm when you ought to be angry.
Holding back words that won’t heal.
Judging less.
Understanding more.
Question - What do you learn in a bear market?
Answer - It teaches the rules of investing.
Question - What do you learn in a bull market?
Answer - It helps to forget the rules of investing.
Don't make fun of people who have made losses recently in silver. You or I also could have been in that place. Booms and bursts are due to human nature which never change. If you're better wired, thank God.
Guide them as to how to come out of this. Explain them how investing needs to be approached. It's upto them to learn or not.
From your side, educate and don't make fun of them.
“Never ask the doctor what you should do.
Ask him what he would do if he were in your place. You would be surprised at the difference.
This applies to investing:
Doon’t ask advisors about positions,
ask what is in their personal portfolio.” - Nassim Nicholas Taleb
Risk is more and return is less when prices (valuations) are high.
Risk is less and return is more when prices (valuations) are low.
In bull markets, only opportunities are looked at and risk is ignored.
In bear markets, opportunities are ignored and people are obsessed with risk.
So bull markets are more risky because from the summit all roads only lead downwards.
Bear markets are less risky because from the bottom it is only one way to go - up.