Markets across the globe are back to where they had been in the first quarter of 2020.
Some have gone past their respective highs as well!
It all looks like a non-event for the set of determined investors who believe in buy and hold strategy.
But scratch the surface, and you will find a whole new story…
Everyone has gone through three distinct phases:
A) Watching with trepidation, as markets started melting. Survival strategies were hurriedly chalked out.
B) Periods of indecisiveness. Speculations about the next direction of the market…Sitting on a stockpile of dry powder waiting for the deployment.
C) Awestruck by the bounce back. regretted the overreaction while portfolio values soared for a select (lucky) few.
And all these causes a considerable amount of pain and paranoia which may lead to some unwise decisions like quitting the markets or a change in strategy.
Rather than using the risk-adjusted metrics for performance evaluation, I guess we should figure out a few discomforts adjusted return parameters because this is the real price, we pay for earning those returns!