DATA VACUUM INVESTMENT

I am not referring to the unavailability of data when I say Data Vacuum. But the unavailability of any concrete data or result to act on or to make a judgment.

For example, take the 3-year GDP growth estimated of India, one of the starting points for any analysis. In the past 3 months, the rating agency has covered everything from -10% to +10%. Everything under the sun is covered, numbers from deep recession hit condition to a strongly developing one.

Furthermore, the market has been highly volatile. There were high fluctuations in the past 6 months.

Thus, it is critical to have an “Objective or Investment Goal” before investing. The clearly defined objective is an unconditioned need of all time. Following the strategy during unprecedented or highly volatile times is critical for investment success.

Setting Objectives won’t eliminate the market volatility or generate immediate profits. But it will cut the unnecessary losses that people make due to whimsical or impulsive decisions.

For good long-term returns, reducing unnecessary losses is as important as generating profits.