BLOCK OUT THE MARKET CLAMOUR AND STAY WITH EQUITIES FOR LASTING WEALTH

Short-term market events often don't require action—most dips are temporary

- Dhirendra Kumar

There's something about those sharp red streaks on market charts that can rattle even seasoned investors. Last month's global selloff—S&P 500 down 7%, Sensex over 5%—triggered the usual cycle: alarming headlines, expert commentary, and social media swinging from concern to panic. Déjà vu? It reminds me of what I wrote during the pandemic about the toxic effects of news overload on investors. The real issue, I argued, was faulty feedback loops—a point that feels even more relevant now.

The noise trap: Our investment decisions often get distorted by the constant noise from news channels and social media. These platforms create urgency, pushing the false idea that every market dip demands immediate action. But the truth is—most short-term market events don't require any reaction at all.

Take a step back from those dramatic graphs. Yes, markets have dropped sharply. But zoom out, and you'll see they've always moved in cycles—rising and falling with regularity. What feels like a crisis in the moment often turns out to be just a small bump over the long run. A 5-7% decline, while uncomfortable, is normal and doesn't call for drastic moves.