This announcement is often heard during air travel. The air hostess, in this casereminds me of an MF Advisor.
The moment there is volatility in the air, she instructs ( not requests ) us to fasten our seat belt. Imagine what would happen if we were to exit the aircraft 😜🙄😱.
Fortunately for the air hostess the plane doors are sealed or in our language there isn’t any liquidity to escape.
However, even if there was liquidity in the form of parachutes would it be wise to jump out of the plane?
Because volatility is temporary. It comes, stays and passes away.
As an MF investor, you must remember this message when markets turn choppy because like the aeroplane when volatile weather strikes the market, the right thing to do is to fasten one’s seat belt as tightly as possible and remain seated.
As an advisor I must ensure that things continue as they were. If you have an SIP, it should simply continue as if nothing has happened. All activities should be simply sustained.
The availability of liquidity should not be used as an escape route just like availability of parachute is not used as an escape route from turbulent weather.
It becomes the advisor’s job to counsel the investor against using his or her parachute (liquidity in the market)to escape volatile markets because while his or her parachute may get him or her out of the volatile market, nobody can predict where he or she will land.
In all likelihood, it could be enemy territory; that is from the frying pan into fire.
So every time you experience volatile markets remember me , I’m there to say,
मौसम ख़राब होने के कारण seat belt का sign on कर दिया गया है. आप अपने seat पे लौट जाये और seat belt को कस कर बान्ध लें.
Due to the poor weather the seat belt sign is on . Get back to your seats , and let us put on our seat belt tightly. Thank You.