Market Ka Kya Lagta Hai?

“Market ka kya lagta hai?” - this single question echoes everywhere - from office discussions to family WhatsApp groups. Whether the market is rising or falling or consolidating, people never stop asking: what will happen next?

But the honest truth is simple - no one really knows. There are two timeless principles that every investor must remember. 

Truth No. 1 – In the long run, markets go up

If you study the history of the stock market you will notice one consistent trend: over time, markets rise.Yes, there will be temporary corrections, global crises, or uncertainty, but these are only pauses in a long-term growth journey.

Over a period of 5, 7, 10 years, markets have always rewarded patience. The reason is simple - as businesses grow, profits expand, and the economy progresses, stock prices eventually follow.

Hence, those who stay invested for the long term always benefit. The principle is clear - time in the market is more important than timing the market. Trying to jump in and out frequently rarely works. Staying invested and disciplined does.

Truth No. 2 – In the short run, no one knows what will happen

The second truth is harder to digest. In the short term - over the next day, week, month, or year - no one can predict the market’s movement. There will be ups and downs, sudden rallies, unexpected corrections, and confusing phases. Even the best experts and algorithms cannot forecast them accurately.

Short-term volatility is not a bug - it is a feature of the stock market. In fact, this volatility is what allows Systematic Investment Plans (SIPs) to average out costs and help long-term wealth creation. Markets move on emotions - fear, greed, speculation, optimism, and panic. That is why short-term forecasts almost always fail.

So, what should investors do?

The solution is simple: keep investing regularly and stay invested. This applies across equity and hybrid mutual funds, as well as direct stocks. Do sufficient SIPs in all market conditions - rising, falling, or flat. Over time, these steady investments average out and allow compounding magic to work silently and powerfully. Along with SIPs, add periodic lumpsum investments when possible. Align everything with your long-term financial goals.

Do not waste energy predicting the next market move. Focus instead on long-term participation and discipline. Remember, time is your best fund manager.

In summary

There are only two fundamental truths about the market:-> In the long run, markets go up.-> In the short run, markets remain volatile.

Once you understand these two realities, you will stop asking “Market ka kya lagta hai?” and start asking the more important question - “Am I investing enough for my financial goals?”

That is when the market stops being a mystery and starts becoming your most powerful wealth-creating partner.

(The author is a Chartered Accountant and CFA (USA). Financial Advisor.  Views personal. He could be reached on 9833133605.)