Smart Money | Some things don't have a recourse — survive and make money, says Basant Maheshwari

In a year that has begun with many headwinds like higher interest rates, slower growth, big tech lay-offs globally and a risk aversion towards risky assets, Smart Money tries and goes back to some basic investing principles to help investors wade through the storm.

According to him, if one misses the downside, one also misses the upside. “Because the market is not going to invite you saying the party is starting again, why don’t you join? I am seeing so many people who book out early, they don’t get back in. It looks difficult, painful, there is trauma, there is pain, there is so much of grief but that is the only way out, you have to take the pain for the gain,” he explained.

The lessons he talked about are don’t fight the Fed when the market falls, earnings don’t matter because everything falls, companies with good earnings always bounce back, stocks can fall without logic because someone else on the margin or leverage, every stock has its day, popularity loses, consensus rarely works because everyone cannot be rich at the same time, information is democratized causing volatility and money can be made by short-term trading but wealth creation needs long-term EPS growth.