With lots of known unknowns, caused by excessive market volatility and the unequal responses by governments the world over, the Covid-19 pandemic has left even the most seasoned investor feeling uncertain about the future.
Often, to make sense of the noise, investors ought to take a step back and regain perspective. Analysing long-term data is crucial to our investment process and it also teaches us some profound lessons and principles. Understanding these lessons will help you build the right investment solution to achieve your goals.
While these are well-known principles, in times of crisis, we tend to forget them. However, it is during these tough times that we need these lessons the most.
We have seen this time and again, that during a crisis, investors essentially go into survival mode. They lose sight of what we are trying to achieve, and their focus starts to narrow. They are more interested in how the crisis plays out in the short term, when we should be doing the complete opposite.
Here are seven simple, yet fundamental lessons that will help you as an investor to build a more resilient portfolio, even amid widespread uncertainty. They will help you look beyond the short-term volatility and discover the truth about investing, charting a path forward.