Nifty is down approx 3% today thanks to some numbers about employment figures gone bad in US, war possiblity in Ah, the stock market—a wild beast that keeps us all on our toes! Today, it took quite a dive, with Nifty dropping around 3%.

The culprits? Unfavorable employment numbers from the US and brewing tensions in the Middle East. The Stock Market Crash on August 5, 2024, is yet another reminder of the market’s unpredictable nature. It seems like a perfect storm, doesn’t it? But as they say,

“This too shall pass.”

Now, let’s talk about the elephant in the room: my “sizeable” investments in the stock market and mutual funds. It’s like being caught between a rock and a hard place when the market crashes. You see, my mutual funds are heavily invested in the same stocks I own directly. So, there’s really nowhere to hide if things go south.

I’ve been learning about hedging—how to protect my portfolio, which has a beta of about 1.4 (for the uninitiated, that means it’s more volatile than the market) But, like many, I couldn’t finish my hedging strategy in time and was a bit short on cash. Classic, right? But hey, I’ll definitely get it done in the future. I have a gut feeling we’ll see a few more dips in the coming months. Just a hunch, but always good to be prepared! I will share my complete hedging strategy once I am done with that.

“Be fearful when others are greedy and greedy when others are fearful.”

Wise words from Warren Buffett. And that’s exactly what I did today. As soon as the market took a nosedive during the Stock Market Crash on August 5, 2024, I jumped in and made a sizeable investment in my mutual funds, spending the last of my cash. Crazy? Maybe. But there’s a method to the madness. When there’s blood in the streets, it’s time to invest.

I also scooped up some quality stocks at their lowest prices. Because, let’s be honest, every sane investor knows that these moments are golden opportunities. Waiting for the markets to recover is tough, though. I mean, who likes to see red charts in their portfolio? Not me, that’s for sure. But it’s all about staying calm and not panicking.

So, if you’re in the same boat, take a deep breath and hold steady. The market is like a roller coaster—full of ups and downs. But in the end, it’s all about the long game. Stay wise, stay patient, and most importantly, stay invested.