{"id":17847,"date":"2022-02-25T15:51:31","date_gmt":"2022-02-25T10:21:31","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=17847"},"modified":"2026-04-10T15:26:52","modified_gmt":"2026-04-10T09:56:52","slug":"investing-in-volatile-markets","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/investing-in-volatile-markets\/","title":{"rendered":"Investing in Volatile Markets"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Periods of market volatility often coincide with an overload of alarming headlines\u2014geopolitical tensions, interest rate hikes, inflation concerns, or sudden moves in global assets. When combined with daily portfolio tracking, even disciplined investors can feel uneasy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But volatility is not unusual. Markets have repeatedly faced wars, policy shifts, crises, and economic shocks. The key question for investors is not how to predict these events, but <\/span><b>how to respond without disrupting long-term wealth creation<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>1. Why Markets Become Volatile During Global Events<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Market corrections often occur when multiple macro forces converge. Periods like early 2022 were influenced by factors such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Geopolitical tensions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rising interest rates globally<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Elevated inflation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Higher commodity prices<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These developments create uncertainty about growth and earnings in the short term. Liquidity conditions also tighten, which can amplify market swings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, history shows that markets tend to <\/span><b>absorb shocks over time<\/b><span style=\"font-weight: 400;\"> as businesses adapt and economies adjust.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For investors, this reinforces an important principle: volatility is a feature of markets, not an exception.<\/span><\/p>\n<div class=\"mceTemp\">&nbsp;<\/div>\n<h2><b>2. The Long-Term Trend Matters More Than Short-Term Moves<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Looking at long-term market history, major indices have experienced numerous corrections, crises, and recoveries. Yet the broader trajectory over decades has remained upward, driven by economic growth and corporate earnings expansion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Short-term declines often feel significant in the moment, but over longer horizons, markets have frequently recovered and moved higher.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This does not mean every decline is followed by an immediate rebound. Rather, it highlights that <\/span><b>long-term participation in markets matters more than reacting to short-term uncertainty<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>Let\u2019s have a look at some data on how markets responded to corrections in the past.<\/p>\n<p><a class=\"gridlove-popup-img\" href=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/sensex-3-year-forward-returns.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-17849\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/sensex-3-year-forward-returns.jpg\" alt=\"sensex 3 year forward returns\" width=\"765\" height=\"310\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/sensex-3-year-forward-returns.jpg 1280w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/sensex-3-year-forward-returns-600x243.jpg 600w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/sensex-3-year-forward-returns-1024x415.jpg 1024w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/sensex-3-year-forward-returns-150x61.jpg 150w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/sensex-3-year-forward-returns-768x311.jpg 768w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/sensex-3-year-forward-returns-270x109.jpg 270w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/sensex-3-year-forward-returns-370x150.jpg 370w\" sizes=\"(max-width: 765px) 100vw, 765px\" title=\"\"><\/a><\/p>\n<h2><b>3. Asset Allocation: The Foundation of a Peaceful Investing Experience<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One of the most effective ways to manage volatility is maintaining a balanced asset allocation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Diversification across different asset classes helps reduce the impact of sharp movements in any one segment. Typically, a combination of equities, debt instruments, and assets such as gold can provide stability because these assets often behave differently across market cycles.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A structured allocation offers two key benefits:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It protects the portfolio from extreme swings<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It reduces the emotional pressure to make reactive decisions during market declines<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In practice, investors who stick to their planned allocation tend to navigate volatility more comfortably.<\/span><\/p>\n<p><a class=\"gridlove-popup-img\" href=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/01\/bse-sensex-annual-returns-1981-to-2020.png\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-17714\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/01\/bse-sensex-annual-returns-1981-to-2020.png\" alt=\"bse sensex annual returns 1981 to 2020\" width=\"705\" height=\"359\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/01\/bse-sensex-annual-returns-1981-to-2020.png 1122w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/01\/bse-sensex-annual-returns-1981-to-2020-600x305.png 600w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/01\/bse-sensex-annual-returns-1981-to-2020-1024x521.png 1024w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/01\/bse-sensex-annual-returns-1981-to-2020-150x76.png 150w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/01\/bse-sensex-annual-returns-1981-to-2020-768x391.png 768w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/01\/bse-sensex-annual-returns-1981-to-2020-270x137.png 270w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/01\/bse-sensex-annual-returns-1981-to-2020-370x188.png 370w\" sizes=\"(max-width: 705px) 100vw, 705px\" title=\"\"><\/a><\/p>\n<p>The above data is the reason we recommend not to disturb the equity portion in your asset allocation. Changing your asset allocation frequently will only reduce long-term returns or missing out on the target corpus.<\/p>\n<h2><b>4. Managing Expectations During Market Corrections<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Market downturns can trigger strong emotional reactions. A disciplined framework helps investors avoid decisions that can hurt long-term returns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A few principles are particularly useful during volatile periods:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Invest only the surplus meant for long-term goals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avoid reacting to short-term market noise<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do not chase extreme return expectations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Focus on business quality and valuation rather than price movements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stay invested for the duration required to achieve financial goals<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The most important variable in wealth creation is often <\/span><b>time spent invested<\/b><span style=\"font-weight: 400;\">, not short-term market timing.<\/span><\/p>\n<p><a href=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/why-to-invest-in-gold-how-much-and-where\/\"><strong>Blog<\/strong><\/a> on <strong>Gold Investing.<\/strong><\/p>\n<p>Our <a href=\"https:\/\/www.moneyworks4me.com\/omega-segregation\/multi-asset-portfolio-manager\/\"><strong>Omega Multi-Asset Portfolio Advisory<\/strong><\/a> solution was built exactly to achieve the purpose of this blog.<\/p>\n<p>Lastly, abide by the wealth-building formula.<\/p>\n<p><a class=\"gridlove-popup-img\" href=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/wealth-building-formula.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-17852 size-full\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/wealth-building-formula.jpg\" alt=\"wealth building formula\" width=\"710\" height=\"96\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/wealth-building-formula.jpg 710w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/wealth-building-formula-600x81.jpg 600w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/wealth-building-formula-150x20.jpg 150w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/wealth-building-formula-270x37.jpg 270w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2022\/02\/wealth-building-formula-370x50.jpg 370w\" sizes=\"(max-width: 710px) 100vw, 710px\" title=\"\"><\/a><\/p>\n<ol>\n<li>Ensure you stay invested with the surplus that you have earmarked for long-term investing. Do not sell our recommended stocks in panic unless advised. These times are best spent staying invested.<\/li>\n<li>Avoid expecting extreme outcomes from your investments. Most disappointments happen when extreme expectations are set. Check this <strong><a href=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/very-high-returns-expectations-can-become-a-stumbling-block\/\">blog<\/a><\/strong> by our Founder, Raymond Moses on expectations. Don\u2019t chase very high returns and be tempted to achieve it by buying more when the market is falling and you are seeing lower prices. Remember, when seen from the recent highs, some prices will seem attractive, but they may not be when seen from their intrinsic value. When that happens we will guide you to invest in the best stocks.<\/li>\n<li>The exponential figure is the number of years that you stay invested, and that\u2019s what the game-changer is. Stay invested as long as it is required to meet your pre-set goals.<\/li>\n<\/ol>\n<h2><b>The Bottom Line<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Volatility is an inevitable part of investing. Global events, policy changes, and economic cycles will continue to influence markets from time to time. But history shows that long-term investors who maintain discipline and asset allocation tend to navigate these phases more effectively.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The focus should remain on process\u2014investing in quality businesses, maintaining diversification, and staying aligned with long-term goals.<\/span><\/p>\n<p><b>A Note from MoneyWorks4Me<\/b><\/p>\n<p><span style=\"font-weight: 400;\">At MoneyWorks4Me, our approach combines valuation-driven stock selection with disciplined portfolio construction and asset allocation. By focusing on research and long-term fundamentals, we aim to help investors navigate volatility with greater clarity and confidence.<\/span><\/p>\n<p><strong><em>&nbsp;<\/em><\/strong><strong><em>Check our next blog on <\/em><\/strong><em>&#8220;<\/em><em><a href=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/long-term-investing-with-moneyworks4me\/\">what are the right actions that you should take now<\/a>&#8220;.<\/em><\/p>\n<p><strong><span style=\"text-decoration: underline;\">Top Picks For You<\/span>:<\/strong><\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium\" style=\"background-color: #1eaf6d; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.moneyworks4me.com\/stock-market\/stock-screener\/nifty-50-fair-value?from=investmenshastra_emotionally_prepare\">Best Nifty 50 Stocks at Fair Value<\/a> <a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium\" style=\"background-color: #1eaf6d; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.moneyworks4me.com\/stock-market\/stock-screener\/best-from-nifty-500?from=investmenshastra_emotionally_prepare\">Best Stocks from Nifty 500<\/a> <a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium\" style=\"background-color: #1eaf6d; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.moneyworks4me.com\/stock-market\/stock-screener\/best-from-dividend-opportunities?from=investmenshastra_emotionally_prepare\">Best Dividend Stocks<\/a>&nbsp;<a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium\" style=\"background-color: #1eaf6d; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.moneyworks4me.com\/stock-market\/stock-screener\/best-from-nifty-smallcap-250?from=investmenshastra_emotionally_prepare\">Nifty SmallCap 250 Undervalued Stocks<\/a>&nbsp;<\/p>\n<p><a href=\"\/omega\/portfolio-advisory\/\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-21416\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-1.jpg\" alt=\"\" width=\"851\" height=\"251\" srcset=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-1.jpg 851w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-1-600x177.jpg 600w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-1-150x44.jpg 150w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-1-768x227.jpg 768w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-1-270x80.jpg 270w, https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2024\/03\/Omega-CTR-1-370x109.jpg 370w\" sizes=\"(max-width: 851px) 100vw, 851px\" title=\"\"><\/a><\/p>\n<hr>\n<p><a href=\"https:\/\/www.moneyworks4me.com\/\"><img decoding=\"async\" style=\"float: left; height: 100px; padding-right: 16px; margin-left: 40px;\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2021\/07\/logo-mw4me.png\" alt=\"\" title=\"\"> <\/a> <a class=\"hide-mobile\" href=\"https:\/\/t.me\/mw4me\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" style=\"float: left; height: 100px; padding-right: 16px;\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2018\/05\/investments-shastra-blog.png\" alt=\"\" title=\"\"> <\/a><\/p>\n<div class=\"hide-mobile\" style=\"height: 100px; padding-top: 15px;\"><strong style=\"font-size: 15px; color: #32aadf;\">Join our Telegram Channel:<\/strong><br \/>\n<a style=\"text-decoration: underline; font-size: 14px;\" href=\"https:\/\/t.me\/fundamentalstockinvesting\">Stock Investing<\/a><br \/>\n<a style=\"text-decoration: underline; font-size: 14px;\" href=\"https:\/\/t.me\/mutualfundinvesting\">Mutual Fund Investing<\/a><\/div>\n<p>&nbsp;<\/p>\n<div class=\"hide-desktop\" style=\"float: left; width: 100%; text-align: center; padding-bottom: 15px;\"><a href=\"https:\/\/t.me\/mw4me\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" style=\"height: 100px;\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2018\/05\/investments-shastra-blog.png\" alt=\"\" title=\"\"><\/a><br \/>\n<strong style=\"font-size: 15px; color: #32aadf;\">Join our Telegram Channel:<\/strong><br \/>\n<a style=\"text-decoration: underline; font-size: 14px;\" href=\"https:\/\/t.me\/fundamentalstockinvesting\">Stock Investing<\/a><br \/>\n<a style=\"text-decoration: underline; font-size: 14px;\" href=\"https:\/\/t.me\/mutualfundinvesting\">Mutual Fund Investing<\/a><\/div>\n<div style=\"text-align: center;\">\n<p><span style=\"color: #0070c0;\"><b>Need help on Investing? And more<\/b><b>\u2026.<\/b><b>Puchho<\/b> <b>Befikar<\/b><\/span><\/p>\n<div class=\"puchhoBefikarIcon\"><img decoding=\"async\" loading=\"lazy\" class=\"\" src=\"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-content\/uploads\/2018\/05\/puchho-befikar-logo.png\" width=\"59\" height=\"46\" alt=\"\" title=\"\"><\/div>\n<p><b><i><br \/>\n<\/i><\/b><a href=\"https:\/\/www.youtube.com\/watch?v=iqqbuJbMlk4 \" target=\"_blank\" rel=\"noopener\">Why MoneyWorks4me<\/a> | Call: <a href=\"tel:+91 20 6725 8333\">020 6725 8333<\/a> | WhatsApp: <a href=\"https:\/\/api.whatsapp.com\/send?phone=918055769463&amp;text=Need%20any%20help?\" target=\"_blank\" rel=\"noopener\">8055769463<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Periods of market volatility often coincide with an overload of alarming headlines\u2014geopolitical tensions, interest rate hikes, inflation concerns, or sudden moves in global assets. When combined with daily portfolio tracking, even disciplined investors can feel uneasy. But volatility is not unusual. Markets have repeatedly faced wars, policy shifts, crises, and economic shocks. The key question [&hellip;]<\/p>\n","protected":false},"author":2883,"featured_media":17854,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1147,1150],"tags":[552,1235,83,1466],"modified_by":"MoneyWorks4me","_links":{"self":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/17847"}],"collection":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/users\/2883"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/comments?post=17847"}],"version-history":[{"count":2,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/17847\/revisions"}],"predecessor-version":[{"id":21443,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/posts\/17847\/revisions\/21443"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/media\/17854"}],"wp:attachment":[{"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/media?parent=17847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/categories?post=17847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moneyworks4me.com\/investmentshastra\/wp-json\/wp\/v2\/tags?post=17847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}