Should I Exit Equities Now and Enter Back Later at Lower Levels? fundsindia.com
There is a lot going on in the world – crude oil price volatility, Fed rate hikes, global inflation concerns, surge in commodity prices, Covid outbreak in China etc.
And we have entered week five of the Russia-Ukraine conflict.
Simply put, the news is bad.
Now it’s intuitive to think that the best option is to exit or postpone our equity investments (as it feels like markets may fall) and enter back later at lower levels when the situation improves (and feels like markets will recover).
However, there is a small problem with this approach…
It’s not as easy as it sounds!
Infact, in the 400+ years of stock market history, no one has been able to develop a strategy or model that can consistently exit equities at the market peak and re-enter the bottom.
But the key question for us is…
Why is it difficult to exit at higher levels and enter later at lower levels?
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