Hold your horses

The financial markets are in the grip of a storm. Nifty and Sensex, the Indian equity benchmark indices, dropped in trade on Thursday, after Donald Trump announced a 25% tariff plus additional penalty on India. Tensions between nations, political posturing or rhetoric are enough to cause a cascading decline of indices.

The stock market is largely influenced by 'market sentiment'. This intangible but highly sensitive parameter is largely speculative, based on assumptions and possible fiscal implications of factors such as potential fallouts of Trump tariffs. All such volatile swings are merely storms in a teacup. Our response should be more holistic, a genuine appraisal of the situation, and not be guided by an imaginary extrapolation of surmountable challenges.

Being actively inactive requires the highest level of cerebration. A higher intelligence that can exercise restraint and override impulse and instinct. An intelligence that doesn't trigger the primal, visceral 'fight, flight or fright' response. An equanimous 'This too shall pass' is all that is required to deal with such transient volatility. The markets have seen many upheavals, and then bounced back again. Nothing lasts forever, except fear and angst. Crashing markets, paradoxically, can be a good opportunity to buy rather than to exit. In stock market parlance, one need not be too apprehensive of the 'future' and exercise the 'option' of equanimity and patience.


The one who remains stoic is more likely to have the last laugh.