How NORMAL people are taken for a ride? Very few understand the smart moves.

 

21^st May 2021

How NORMAL people are taken for a ride? Very few understand the smart moves.

Dear Fellow Travelers,

Namaste! From December 2020 till now whatever we have predicted for 2021 has come true 100%. We have categorically said that the conditions of normal people will become worst this year. Just see some of the events.

1.   People have suffered heavily in the 2^nd wave of COVID.

2.   Various natural calamities are taking a toll on the people in affected areas.

3.   Small business people are affected like anything thanks to lockdown.

4.   Job goers are affected and many have lost their jobs.

Now, to deal with that they have sold their Gold / Taken loans or borrowed from their friends and relatives. But the worst effect is going to be to the people will be the people who have come to the STOCK MARKET/CRYPTO MARKET.

Retail guys in the market: -

Last time we had seen that Retail guys are forming 45% of the overall market turnover. This is not only akin to India. But most developed markets like the USA is also having a high degree of retail participation.

This guy may or may not be educated in various fields of education but they are not prepared for the market. What’s more, they rely highly on Media guys for their investment ideas. Another deadly psychology they follow is to buy when the shares are about to reach the top or make a U-turn.  I know quite a few guys in the USA who added bitcoin and other coins in the last month.

Look at the fall in Bitcoin and other CRYPTO. I am sure many would have had a sleepless night with a 40% fall from the top.

What is happening in the market?

This is a Rotation market. They are picking up one sector after another and they are moving very fast. So, it is giving an impression that all shares are moving up. That’s not the fact. Reliance and other top companies are still available at lower levels from their 52 weeks high. It means they are moving small and dead shares with media supporting various stories in those companies.

What will happen to RETAIL guys without proper knowledge or consultant to support?

They have already suffered in jobs and businesses. They might have suffered due to COVID or Natural calamities also.  Now, they are left with little capital and if they lose that also, they will suffer big time.

How is SHARE MARKET devised?

Share market is devised in such a way that money from the IMPATIENT GUYS goes to PATIENT GUYS. When Retail guys are in soup from other areas, they become impatient when they come to the stock market. They want to earn fast money. Their impatience is going to be the cause of their further suffering as and when the market falls. Remember proverb – “HASTE MAKES WASTE”. This is not the time for SENSE of EMERGENCY with respect to market investment for Novice Guys.

If CONSPIRACY Theorists are correct then this can be a game plan: -

There are various conspiracy theories going on in social media. I am sharing their view and not mine. As per them – they have a plan to reduce the population of the World with COVID. Now, they gave you a lot of FEAR / took away your business and job. Whatever little you have; they want you to lose in the stock market or crypto market.

I don’t subscribe to the above view. But, if at all, they are right, it makes sense to save whatever you have. From my side, I have the following suggestions.

How to deal with the situations?

Everybody considers themselves as wise as Solomon. So, they will not take action when they are told to do. Their sense of urgency gets activated only and only when they are really in the soup. They will try to DIG a WELL when the house is on the fire. Now, rather than blaming themselves for not taking action in the past to prepare for probable future conditions, they will blame COVID/ Government policies and others for their losses and sufferings.

As per my understandings – COVID situations will become manageable post 6^th June 2021. Market and other things will be open gradually. Take a holistic view of your situations at that time. As per my call – situations will turn negative again from October End to April 2022 due to COVID 3^rd wave. If you have suffered due to Lockdown, you have 5 months’ time to prepare for the 3^rd wave.

If 3^rd Wave doesn’t come to India, you will have extra money to invest from November to April-2022. But do prepare as if it is coming.

For Market investments – take proper education or support from a consultant before you jump in a big way.

Have a Happy Investing.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

 

Live With Passion…Invest With Passion.

 

Hitesh Parikh.