{"id":1570,"date":"2021-01-01T00:00:00","date_gmt":"2021-01-01T00:00:00","guid":{"rendered":""},"modified":"2023-05-16T06:52:20","modified_gmt":"2023-05-16T06:52:20","slug":"noise-an-investors-dilemma","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/noise-an-investors-dilemma\/","title":{"rendered":"Noise: An Investor’s Dilemma!"},"content":{"rendered":"
<\/div>

In our previous article, we spoke to you yesterday about 2 types of investors, let us start by showing you 2 charts showcasing Automobile Production in India and how you are forced to think negatively with the noise outside.<\/p>\n

Chart 1 showcases the trend line over the past 18 odd months.<\/p>\n

Chart 2 showcases the trend line over the past 20 odd years.<\/p>\n

Chart 1<\/strong><\/p>\n

Chart 2<\/strong><\/p>\n

Chart 1 shouts out that India is going through an extremely rough phase, and if the chart is to be believed, doom is something we would see ahead.<\/p>\n

Chart 2 shows a longer trend and shows a completely different picture. The trend line shows what to expect in the future.<\/p>\n

Let me highlight a couple of pointers to you on this:<\/p>\n

    \n
  1. \n
      \n
    1. To start, check the phase between 1997 & 1999, automobile production was flat and then had a fall. And after that, they jumped up. The same has got repeated each and every time the line dips for a short period.<\/strong><\/strong><\/li>\n
    2. Every time there has been a dip, there is usually a big jump up that follows.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

      The automobile production has had a CAGR<\/a> increase of 10%+ if I look at the data over the past 19-20 years.<\/p>\n

      It really amuses us when all the noise out there is only about short term happenings and spelling doom for the future.<\/p>\n

      The good part of the story \u2013 every time this has happened \u2013 in 1999-2000 or in 2008-2009 \u2013 if an investor ignored the noise and preferred to be Type 2 investor, he would have been a participant in the big bull runs that followed.<\/p>\n

      But, if you are a Type 1 investor who invests only when everything looks green and wonderful… not sure what I can say to that approach.<\/p>\n

      And in view of the phase that we are at currently going through, data suggests that we will see a repeat of or rather see a bigger bull run in the coming few years.<\/p>\n\n\n

      Read more: \u00a0How Long-term investing helps create life-changing wealth \u2013 TOI<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      In our previous article, we spoke to you yesterday about 2 types of investors, let us start by showing you […]<\/p>\n","protected":false},"author":5,"featured_media":1571,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=1570"}],"version-history":[{"count":0,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/1571"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=1570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=1570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=1570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}