The World's at War, Why should I Invest?

 If you switch on the TV or open a social media app, It is possible that you will be swamped by information about the death and destruction the war in Northern Eurasia is causing. 

As a result stock markets around the world are crashing, prices of commodities are sky rocketing stoking fears of price rise in everything starting from Cooking Oil to Bathing Soap to what not! Then there is impending fear that fuel prices can go up anytime. So amidst all the gloom why should I invest? 

Invert, Always Invert - Charlie Munger

For once we listened to what the wise old man said and decided to invert the question and tell our readers - Why we should invest now. For that lets turnover the pages of history and see how the Stock markets have fared whenever there was an International issue in the last 2 decades. Here's the mini list of such issues - 

  • 9/11 - Twin Tower crash - 2001
  • Subprime mortgage crisis - 2009
  • Euro Crises - 2012
So lets assume that 
  1. We start investing at the start of the year when the event happened
  2. We Invest for minimum 8 Years continuously which we believe is"one investment cycle"
Here's what would have happened if we chose to Invest during the 9/11 crisis 

2. Investment started during the Sub Prime Crises, would have fared like this - 

3. And Finally If you started your investment Journey in the year we faced Euro crisis, this is how it would have fared - 

So in each of the 3 significant crisis, as long as Investors remained Disciplined coupled with a long term thinking, They would have been rewarded handsomely. So, the Moral of blog is, its not the worldly crisis that would affect us but crisis of Indiscipline and short term thinking at personal level which harms our financial returns and goals.



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