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Oct 04

Weather and equity markets.

Often i get lots of story in Whatsapp. Instead of just forward, i decided to convert the story for a investment lesson..
Here its  …………………..
A  man had four sons. He sent each of them to go look at a pear tree that was a great distance away.
The first son went in winter, the second in spring,  the third in summer and  youngest son in the fall.
When they came back, he called them together to describe what they had seen.
The first son said that the tree was ugly, bent, and twisted. The second son said, it was covered with green buds and full of promise.  The third son disagreed. He said it was laden with blossoms that smelled so sweet and looked so beautiful, it was the most graceful thing he had ever seen. The last son disagreed with all of them; he said it was ripe and drooping with fruit, full of life and fulfillment.
The man then explained to his sons that they were all right, because they had each seen but only one season in the tree’s life. He told them that you cannot judge a tree, or a person, or investment only one season, and that the essence of who they are and the pleasure, joy, and love that come from that life can only be measured at the end, when all the seasons are up.
Similarly, in investment, every investor’s experience is based on the period in equity investments.
Retail investors mostly enter mutual fund or equity markets when they see good rallies and confirm that market is in bull rally. But markets could be closer to the peak.  So, when market corrects deeply,  such investors withdraw all the investment and the  experience will be bad.
So, don’t time the market.  Instead, pay heed to what the investment advisor says.
Suresh Parthasarathy,
98404 54737.

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