What should I do now?

Headlines today do not inspire confidence. So much of gloom being painted , primarily because of the after effects of aggressive financial methods and leverage and hand-in-glove of the politicians and policy makers. 

If the situation does not improve in the next 12-18 months, this decade could well end up as the ‘ lost decade ‘. So when everyone is being fearful from the greedy,  it is the time to pick and choose.

If you have planned your investments with a goal and time horizon, with asset allocation in place, no need to panic .

If you have not, do have a financial plan in place and act as noted as above.

Also, with fireworks expected in Eurozone and with policy paralysis by the Govt. of India, the economic environment looks gloomy. Staggered purchases in equity with overweight on debt instruments could also be an approach worth a merit.

Real Estate also would play up. But only if you know what you’re doing and do not need funds for the long term.

All in all ,  the ghost of 2008 seems to be visiting. However, as we say, this too shall pass….

What you need to do is have your goals and asset allocation in place and trust your gut and avoid the noise in the media.

Do understand it’s your behaviour which will determine your wealth .

·         If loss aversion is the key ( long term debt funds  with a horizon of 12-18 months is the one for you)

·         If status quo is your style ( then again overweight on debt instruments is the way)

·         If controlled risk taking is the one ( which means you can sleep t night with the volatility around you, have an equity exposure of atleast 20% of your portfolio

Whatever you do,  trust yourself and ask if this is what I would do, and then go ahead.

Happy Investing .. Remember , not taking a risk is also a risk.