01 Nov Krishna & the Monster
Once on a full moon day, Krishna and Balarama were walking in the forest, it was late and they decided to rest in the forest for the night.
It was a dangerous forest, so Krishna suggested “Baladeva, you keep watch until midnight while I sleep, and I will be on watch from midnight till morning.” They both agreed and Krishna went to sleep.
A few hours passed, Krishna was sleeping sound. Balarama heard a growl at a distance, it was a terrifying sound. He walked a little further towards the sound. Now he could see a gigantic monster approaching him. The monster growled again, Balarama was very afraid, he trembled in fear.
Every time he trembled, the monster grew double in size. The monster grew bigger and bigger as it approached Balarama. Now the monster was standing very close to Balarama, it growled again. Terrified by the sound, size and terrible smell of the monster Balarama screamed “Krishna! Krishna!” and collapsed and fell unconscious.
Woken up by the call, Krishna followed the sound and found Balarama sleeping, Krishna thought, ‘It must be my turn now’ and started walking too and fro. Slowly Krishna recognized the monster standing nearby.
The monster growled at Krishna. “What do you want?” Krishna asked unafraid. The size of the monster decreased, it shrunk to half its size. “What are you doing here?” Krishna asked again and the monster shrunk again. Krishna kept questioning it expecting a reply, the monster kept shrinking every time he asked.
Now the monster was just 2 inches tall, and looked cute and adorable. Krishna took it in his hand and placed it in his waist pocket. The night passed and Balarama woke in the morning.
Balarama saw Krishna and joyously shouted “Krishna! Krishna!“.
“Krishna! you don’t know what a terrible thing happened while you were asleep. There was huge monster trying to kill us both. I don’t know how we survived, the last thing I remember is that I fainted.” Balarama said trying to recall yesterday night’s events.
Krishna took out the little monster out of his pocket and said, “Is this the same monster?”
“Yes, but it was so big! how did it shrink?” asked Balarama.
“Every time I questioned it, it shrunk in size, finally it became this.”
Balarama told Krishna how the monster grew yesterday every time he was scared of it.
Isn’t this the same story, in equity investing????
An ignorant investor gets his education from media which compare a stock market correction to “blood bath”. No wonder the stock market for such an investor is akin to a monster whom he dreads.
The only way to face this monster is through education; something which every Financial Advisor must be equipped to provide.
Once educated and knowledgable, the stock market which appeared like a ferocious monster would simply shrink just like the monster in the above story
Thus education is a precursor to market growth. The opportunity is there to be grabbed. The investor who loves the economy and believes in its future potential needs to know that the stock market who he is so petrified of is nothing but the reflection of the economy.