Note: I am not predicting a stock market crisis in the near term. But what follows below is a discussion on how an investor can survive a crisis that will certainly happen at some time in the future. That’s the nature of financial markets, you see.
“Hey Vishal, how are you doing today?” asked my friend Ravi as we met for lunch last weekend.
“I’m good, Ravi. How have you been?”
“Super, and more excited than ever!” he replied.
“Glad to know that,” I said. “You got a promotion at the job?”
“No, I’m excited for another reason.”
“Bull market?” I asked, almost knowing what was coming next.
“Yeah, yeah, you guessed it right this time!” Ravi exclaimed. His joy seemed to know no bounds.
“I just sold a five-bagger from my portfolio,” he said with great pride, “And three more stocks are almost hitting that level.”
“Great to know that Ravi. The last time I saw you this happy was in 2007.”
“Oh, don’t be a sadist Vishal,” Ravi said. “Don’t remind me of what happened then.”