Two Lenses To Look At The Stock Market

Type 1 Investors Investors wearing short-sighted lens are those whose actions are mostly based on the latest market environment, what are the stock prices are right now or where is it expected to head in the near future and the likes. These participants track index minute to minute, day to day, month to month, and quarter to quarter, and their obvious question always is “market kya lagta hai” to which there is never a correct answer. But the reality is if one were to track the stock market behavior – it varies across short, medium, and long term. Short Term: Anywhere within a year to 3 years, you can and should expect the stock market to behave not just irrationally but extremely so - in response to the fear or fad of the moment. I call it, “The Bumpy Road between Market’s Long-Term Returns”. The compounded return of the Nifty Index since the year...