A story to start with,
The world has seen a swan as a symbol of white for centuries. Until in 1697, Dutch sea captain Willem de Vlamingh explored west coast of Australia and during his expedition, he saw a black swan. Since then Black Swans became symbol of unbelievable.
A new term coined as “A Black Swan Event” – It is an unthinkable event that massively affects our life. Career and country. There are both positive and negative events. Influence of social media ten years ago and now, invention of penicillin, discovery of gold mines, somewhere are positive Black Swan events. Whereas falling of USSR, World Wars and latest one is Covid emergency are negative Black Swan events.
Investment in volatile market has become a daily activity for many investors. Sometimes it goes up and sometimes it goes down. But In general markets move around a stable mean. Our SIPs are ultimately to benefit from the stable mean.
Though we continue to plan for better future. Black Swan events are impossible to predict that destroys our best laid plans. Certain occurrences of events are unknown. We never predicted occurrence events like Covid a year back but it has affected entire human generation today.
What a wise investor should do?
- Stay out of Debt
- Invest your Savings with continuous eye on it
- Have a generalized standard of living
Continue points 1,2,3 whether there is any emergency or not.