It was late evening at Bharadhwaj Investsmart. Charts on
screens, coffee cups half full, everyone winding down after a long market day.
Ramesh and Aditya had dropped by for a casual catch-up with Vaidy and CA Srini.
Ramesh: “Today’s market fall was crazy.
Nothing happened in India, but the moment the US inflation numbers came out
last night, everything here tanked. Why do we react so much to what’s happening
abroad?”
Aditya: “Exactly! Our companies are
posting great results. Still, we fall because someone on Wall Street sneezes?”
Everyone laughs, and Vaidy leans back with his trademark grin.
Vaidy: “Okay, think of it like this…
You both have dogs at home, right?”
Ramesh: “Yes. Bruno. Absolute
gentleman.”
Vaidy: “Good. Now imagine you take
Bruno for a walk. He’s calm, tail wagging, not a troublemaker. But the moment
you pass that lane where a bunch of stray dogs sit and bark for no reason…
Bruno also starts barking.”
Aditya nods immediately.
Aditya: “Oh yes! Even mine does that.
Suddenly becomes aggressive, drags the leash, growls… the whole drama.”
Vaidy: “Exactly. And the moment you
pull them away and talk to them normally, they return to being the same sweet,
trained pet again. Nothing changed inside them, only the environment for a few
minutes.”
CA Srini: “That’s literally what the
domestic market does when foreign markets go haywire. Our fundamentals don’t
suddenly collapse. But when the entire global pack starts barking, we react too,
at least temporarily.”
Ramesh: “So today’s fall was just Bruno
barking with the stray dogs?”
Everyone chuckles again.
Vaidy: “Spot on. The noise outside was
loud, so our market joined the chorus. But once things settle globally, we’ll
go back to following our own fundamentals, earnings, growth, inflation here, policies
here.”
Aditya: “So what should investors do
during this barking phase? Panic? Sell? Hide under the bed?”
CA Srini: “None of the above. If you know
your portfolio well, why you’re invested, what your time horizon is, then you
just keep walking. Let the market bark for a bit. It’ll calm down.”
Vaidy: “That’s the key. The world will
always throw noise at us. But disciplined investors don’t react to every sound.
They hold the leash tight and focus on their long-term goal.”
Ramesh nods thoughtfully.
Ramesh: “Makes sense. The barking cannot
be eliminated, but panic can.”
Vaidy: “Exactly. And that right there
is the mindset that makes long-term investors win.”
The screens continued flashing red, but the room felt a lot
calmer.
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