Many Investors Are Losing Patience
Lately, a lot of people in the stock market are feeling frustrated and tired. They are not seeing quick gains and are starting to feel discouraged.
This is happening because the market has been flat for a few months. When you look back over the last year, the market hasn’t really moved much. This slow phase is testing the patience of many investors.
Periods of No Growth Are Normal
If we study market history, we will see that such quiet phases are not unusual. In fact, in many global markets, there have been full decades where the market did nothing. While Indian markets have mostly avoided such long flat periods, we have still had many instances where the market didn’t grow for 3 to 6 years. We have been quite lucky over the last 10 to 15 years to not face such long dry spells. But it’s important to remember that such times can come.
Don’t Expect Constant Growth
Investors often enter the market expecting regular profits. But the truth is, markets do not grow all the time. There will be ups and downs. Sometimes, there will be no movement at all. This is completely normal. So we should not expect the market to keep rising all the time. If we adjust our expectations, we will be better prepared to handle slow phases.
Lessons from Japan and China
The Japanese stock market is a good example. It had a massive bull run for 30 years. But after that, it went into a quiet phase for more than 30 years (see the image below).
Something similar happened in China. Their market hit a high in 1993, then again in 2008. But even now, 17 years after 2008, the market is still around the same level (see the image below).
This is despite China being a fast-growing, tech-strong economy. These examples show that even strong countries can face long periods of flat markets.
Focus on the Long Term
The most important thing for any investor is to think long-term. If you get good returns in the short term, that’s great. But if you don’t, there’s no need to panic. Markets take time to reward patient investors. So don’t be anxious if your investments aren’t moving right now. Stay calm and stay invested.
