Sensex is a reflection of 30 scripts only:
Sensex figure is the reflection of only 30 scripts out of 5000 Approx. companies listed on BSE so all though it is considered as a meter for overall mood of the market it is not all inclusive
Sensex has very little to do with your investment decision if you have done your financial planning right:
Ramesh has invested in a SIP for his daughter’s education and the funds are required after 15 years
Ramesh need not bother about the market and its movement
Please remember if you have clarity about your goals and you have drafted your financial plan accordingly there is no need to be swayed by market movements
Fear & Greed:
Fear & Greed are the two emotions which drives the market in the short run
When the market is up people queue up to invest and when markets fall people withdraw the money in panic
As an intelligent investor stay guard against this irrational decision making
Warren Buffett once said that it is wise for investors to be “fearful when others are greedy, and greedy when others are fearful.”
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