Indigenous Investors Weekly Insights!
Top 3 well curated stories from the stable of Indigenous Investors incase you missed them. These can range from finance to sports, depends on what made the headlines. Stay tuned.
This week, we cover the following:
India’s retail inflation hits seven-month low of 3.61%, food inflation lowest since May 2023, industrial output quickens
Is It Too Late To Exit The Market?
Pure Independence
India’s retail inflation declined primarily due to falling vegetable prices.
This decrease brings the inflation rate below the Reserve Bank of India’s (RBI) medium-term target of 4% for the first time in six months, potentially paving the way for future interest rate cuts to stimulate economic growth.
Additionally, industrial output experienced a 5% growth in January 2025, up from 3.2% in December 2024, indicating a strengthening economy.
Story #2: Is It Too Late To Exit The Market? (click here)
In a market frenzy like the one that we are facing right now, people have come up with hundreds of schemes on how to handle money invested in the market. Some have become pundits advising everyone to sell high and buy low like they know how the markets are exactly going to behave. Stock markets never follow a linear growth pattern. Instead, they experience cycles of volatility, corrections, and rallies. Investors who try to exit at the peak and re-enter at the bottom often end up missing the best-performing days, which significantly impacts overall returns.
Between 2019 and 2023, the BSE 500 delivered an average annual return of 18 per cent. However, had you missed just the three best months each year, your returns would have dropped to -5 per cent. We have been told by so many people that they have stopped their SIPs because the market is spiralling downwards. However, this is the greatest mistake of their life since they are missing out on cheap buying opportunities.
The article also warns against making investment decisions based on emotions, such as fear during downturns or greed during bull runs. Panic selling can result in missing future growth, while chasing past performance can lead to poor investment choices. Instead, investors should align their portfolios with their financial goals and risk tolerance, rather than short-term market trends.
Think about how many times you will have to be right if you start timing the market. First, you have to be right in selling at the highest point. Then you have to keep patience for the market to finish its downward run so that you could start buying again. If you want to succeed in this process, you will have to keep on doing all over again every time the market hits a peak or bottom. Do you have the expertise to be right so many times? Especially when the people associated with this industry still struggle to even save it confidence where the market will go tomorrow?
It is important to review your asset allocation and diversify to manage risk and enhance returns over time. Instead of attempting to time the market, investors should periodically rebalance their portfolios and stick to a well-defined investment strategy.
Lastly, if you are not planning to use your invested money in the next 12 months, do not worry of the current market conditions as there are extremely dynamic in nature and could reverse into better days without giving prior notice.
Story #3: Pure Independence (click here)
If you think financial independence is all you want, think again. Independence is the best financial goal for most people. But independence is more than just financial – moral, cultural, and intellectual independence – is one of the highest levels you can reach in life. “There is only one success,” says poet Christopher Morley, “to be able to spend your life in your own way.”
At the risk of sounding too philosophical, in the times when everyone keeps on running it’s equally important to slow down and reconcile with your life. You are truly independent when you are able to -
Recognise individuality – People have different life goals, and what works for one person may not work for another. Following someone else’s path blindly can lead to financial and personal mistakes.
Thinking on your own – Intellectual and moral independence is crucial. Many people gain financial freedom but become dependent on cultural or ideological tribes, compromising their true beliefs.
Escape the need to impress others – Much of modern consumption and behavior stems from signaling status to strangers. True independence frees people from the exhausting cycle of seeking external validation.
Forge Strategic relationships – Independence doesn’t mean isolation; it means choosing whose opinions matter, focusing on deep, meaningful relationships instead of seeking approval from everyone.
Foster creativity and accountability – The most innovative and successful individuals work for their own expectations, not external pressures.
Ultimately, true independence leads to a more authentic, fulfilling, and stress-free life.
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