What a few days it has been for the markets globally. What is this drop telling us?? What should we do?
The answer is ... NOTHING.
The fundamental economic data in almost all major markets are in fine fettle. The US economy is doing very well - robust jobs situation and GDP that is estimated to grow at about 3%.
In India, nothing has changed for worse in the past few days to warrant this fall. With the major economic changes of demonitization and GST out of way, most economists, expect a good GDP growth rate and continuing uptrend in profitability of businesses.
Do not panic from all the noise. Keep your eye on your investment goals and if you have additional money, put it to work. After all if we were ready to buy when Nifty was at 11000, why wont we when it is at 10500?
Daniel Kahneman, a nobel laureate and famous psychologist, said...“If owning stocks is a long-term project for you, following their changes constantly is a very, very bad idea. It’s the worst possible thing you can do, because people are so sensitive to short-term losses. If you count your money every day, you’ll be miserable.”