Why You Need To Invest In Debt to Earn Equity Returns

Why You Need To Invest In Debt To Earn Equity Returns?

1) You have Rs 100 in debt. Equity markets correct by 50%

2) You rebalance by moving to equity

3) When markets recover your Rs 100 becomes Rs 200

4) Had your Rs 100 been in Equity you would have recovered your losses

5) Lesson: Invest in debt and wait for correction

6) During correction invest in equity

7) Till you wait for correction, your 100 earns debt returns

8) In investing, “not falling” is more important than “rising”

9) Waiting patiently in Debt despite a raging equity market is always better than succumbing to greed

10) Equity Returns are always generated after a fall and a few good years contribute to the long term story

2 replies on “Why You Need To Invest In Debt to Earn Equity Returns”

Leave a Reply

Your email address will not be published.