Wall Street Effect

The tug-of war between the present-me and the future-me is being fought even before I knew me.

We all wake up to a new maze- one with present choices and future possibilities. We all want to find the best solution, we all want to find our way out from whichever maze we find ourselves trapped in.

It is said that an individual makes close to 35,000 choices a day. Certainly, we all want to make the better choice. Sometimes we are presented with choices- where ‘the better’ is hard to tag; but for most times, we know- what’s better.

Then what stops us from choosing it?

Why do we fail to weigh the present value and future value- and make the ‘sensible’ decisions? It isn’t necessarily because we are irrational idiots or because we lack a sense of vision. It is simply because our affinity for the present, discounts the future.

My bleak finance skills rarely get my balance sheet to balance and often leave out the tax section from the income statements, but I still take interest in my portfolio of choices. Often enough, I find myself in front of the garishly loud board of greens and red; it is intimidating-constantly changing-standing in that room of thoughts is just nerve wrecking. But choices need to be made as default settings are not good enough to out-perform the market.

Any sound financial advisor would agree- when I say the notion of perfect investments doesn’t exist. But there are plenty of famous strategies one may find on investopedia that one can deploy to maximize returns.

(1)    Everyone has a different risk profile and our choices are a mere reflection of our Beta value.

(2)    We know not to place all our eggs in one basket. We know we must hedge and diversify-

Then why place all our faith and peace on one bet?

(3)    Research is always the critical element. Knowing what you’re buying into can be a game changer.

(4)    Old is indeed Gold. Experience will help you make better choices- not because you understand the ‘market’ dynamics better but because you know thyself better.

Some investments turn out bad, some exceed our expectations, while some turn out just as we had calculated them to- but what makes one richer or poorer at the end of the day is not any one investment; so silence off all the advisors of your life and review your life portfolio as a whole.

Invest Wisely- on Bombay-Dreams

Sonia Agarwal

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