A Bit Of Gut For Glory

Bring joy

Indians will always undoubtedly cheer for the  2011 ICC Cricket World Cup final. The Indian team had lifted the World Cup only for the second time. There were plots and subplots in this victory. Chasing a total of 274 against the good Sri Lankan bowling attack, comprising Malinga and Muralitharan, India lost its first wicket in the first over itself. As we know chasing is never an easy task. Add to that the pressure of winning the World Cup under which even the most seasoned cricketers can buckle. Soon India lost Sachin Tendulkar cheaply and the pressure intensified. This was followed by a period of slow and gradual repair and not losing any more wickets. This job was well done by Virat and Gambhir. However, the moment things started to look good, India lost the wicket of Virat. At this juncture normally Yuvraj walks in. However, taking the biggest risk, Mahendra Singh Dhoni, the best finisher, walked onto the pitch in the 21st over. The rest, as they say, is history. As all of us remember the sweet six he hit to win the World Cup. Promoting himself up the order in a crunch situation really required a lot of gut, gumption, and foresight. 

Take Risk

Similarly, the prevailing volatility in the markets is making investors afraid and they are befuddled. Equity, as well as, fixed income markets are giving negative returns and investors are not sure where to invest. Volatility has intensified which has led to panic redemptions across asset classes. Issues of corporate governance and frauds had already created some cracks in the markets and instigated a fall. The nervous sentiment was further compounded by the outbreak of COVID-19 and its ramifications on economic growth. The market took a turn and from a high of ~42000 fell to 25000 and currently trades at ~29900 levels. This is the period when an investor becomes despondent and feels that it might be more prudent to park his or her money in the bank. However, instead of fear, they should opt for greed. This could be an opportunity for investors to reposition their portfolio and invest in long-term investment ideas. The impact of COVID-19 is going to continue and economic growth will weaken. However, your response to the current situation will determine whether you are going to be like MSD and make it count or be the one to play it safe.