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Showing posts from April, 2022

Swinging Markets and Personal Investments

  "Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it" – Warren Buffett   Black swan event of corona forced stock markets to fell by over 40% in March 2020. Lock down was imposed in most parts of the world and the economy at one point had seemingly come to a halt. From there on people learnt on how to live with this scare and economies started recovering. Stock markets either lead or lag the economical indicators. This time they preceded the recovery in economy and stock markets not only staged phenomenal recovery but followed it with a strong bull run over next 1.5 years.   Economies have staged full recoveries and most economic indicators are encouraging except that of inflation. Volatility in markets over last six months doesn’t suggest so. So it is perhaps not very rational to link stock market movements with growth rate in economy in short period. In short period market movements are influenced more