What to do now? Markets crashing like anything! Seems to be the question everyone is searching an answer for.

My advice, breathe easy. Nothing; really nothing has changed with the world.

People will still wake up every morning, brush and shave, and shower. They will still read newspapers printed on paper, sipping tea with sugar in it. People will still drive bikes and cars and suvs to work. They will still need electricity, and oil and roads and bridges. And companies which build them will still need steel and cement. People will still goto banks for deposits and loans. And those banks will still need software to run. People will still buy TV and Refrigerators and Music systems and other consumer goods. And they will still need medicines when they are not well.

It takes thirty years to build rock solid companies like Seimens, Reliance, M&M, SBI, ITC, Hero Honda etc. Can the fundamentals really change in just a weeks time?

Do what you have been doing before. Play with your kids. Spend time with family. Talk to your friends. Give your best to your workplace. Enjoy life. If you have made your buying decisions right, you can sleep sound.

Unless the dollar crashes or unless you are leveraged beyond your limits, you have nothing to worry. And if any of that happens to be true, then also you don't have to worry. Because then you are royally screwed up, and worrying won't change that.

Personally I find Investing to be very much like Rock Climbing. You need intelligence + risk apetite. If you are not intelligent, you won't find the way to the top of the mountain. If you are intelligent, but don't have the risk apetite, then that is more dangerous. You will climb up the cliff, but at the slightest movement of a stone beneath your feet you will look down, and fall off to death.

Unrelated: Incidentally both investing and rock climbing are my overriding passions. Though I haven't got time to do much of the latter recently. 😦

Update: Someone pointed out that if I have made my biggest call on derivatives, am I not over-leveraging? Answer is, No. Coz that biggest call is still just a single-digit percentage of my stock portfolio. That means I am way under the point you can term over. I can pay off my obligations any day, which is what every leveraged player must keep in mind.

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