Volatility, a Partridge in a Pear Tree.

12 days of Christmas and 12 months of Volatility. Frankly speaking, I could not pull out anything from the stock market to compare with the the first day of Christmas other than volatility.

The Legend of Christmas

The Twelve Days of Christmas, also known as Twelvetide, starts from 25 Dec to 5 Jan, is a festive Christian season celebrating the Nativity of Jesus

Volatility’s Offsprings

I am not trying to be blasphemous neither to be controversial. Just plain thinking. Volatility’s children are Compound Interests. If I draw a parallel between the two to “A Patridge in a Pear Tree”, you will understand the sacrifice it made.

A Patridge always flew away from the nest when hunters approached, to save her children, eventually getting shot. This sacrifice is compared to the one that Jesus made for mankind.

Fell, Only to Rise
Rise of Nifty 13250 & Sensex 45000 is “Too true to believe”. After the Colossal Fall in March, this rise to an All Time High in December, has spooked Fund Managers, Investors and Financial Advisors like never before.

8th and 9th Wonder

Keeping true to the spirits of Alpha and Beta for some investors and Omega for few have cemented Volatility as the 9th wonder of the world . Enviously undisputed position, I believe.

The Compound Interest, popularly known in financial advisory world as the 8th wonder, is now shouting from the corner of the ring side….

“Volatility, you fought well, I am the winner.”

Unfortunately, as paradoxical as one could portray. The humongous amount of energy investors wasted on “Timing” the market kept them timid and tired. This trap has eroded timely wealth appreciation.

Warren Effect
Rule No 1, Never Lose Money.
Rule No 2, Never Forget Rule No 1.

Some people often take this literally. Keeping your money only in FD, RD, LIC and PF is akin to loosing money due to low interest and inflationary cost.

Angel You Need

You should have an angel who can guard and guide your money to better the total average growth.
I found it is easy to read and understand Warren, but his thoughts are not like a buffet were you just walk in and have what you like the most.

Bottom Line

To unlearn fear, you have to learn what is risk. Not staying invested is fear. Staying invested by arranging the risk is fearlessness.

So when the opportunity comes to you riding on a reindeer, believe in it and enjoy the cold season. Spring, Autumn and Summer are ahead.

Happy Investing

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: