Focus on progress, not on crisis
There has been no year without any domestic or global crisis. We focus only on crisis and not on progress. This is because, as Morgan Housel says, progress happens too slowly to notice and setbacks happen too quickly to ignore.
In the last 7 decades, how many problems we’ve faced as a nation? Innumerable. At the same time, see how we’ve also progressed on various fronts.
Investors who focus on progress create abundant wealth. Those who focus only on crisis, gets jittery and lose the precious wealth creation opportunity.
You need to always keep only bigger picture in mind. If day to day headlines, amplified by media, scare you, you won’t go very far in investing.
Consumption, entertainment, travel, leisure, buying home, borrowing, saving, investing, insuring, healthcare, industrial activities, agriculture, working in office, improvements in technology, infrastructure development…. the list can fill pages; all continue to happen irrespective of any crisis.
If there is a problem in Turkey, you don’t stop brushing with Colgate, stop taking bath with Hamam or not paint your house with Asian Paints. Commerce is the back bone of civilisation and never stops.
By investing in stocks or equity funds, you’re participating in commerce and its progress.
India over next two decades is capable of becoming a middle income country.
By investing in equity, you also become part of this growth and create wealth.
If you focus only on crisis, you’ll miss the underlying progress.
One crisis or another would always be there but so is progress.
Keep the focus right and just stay the course.