Is "Investing = Equity Investing" ?

There is a huge difference in the investment duration during a bull market and a bear market. Investors who have invested during the recent bull market (2003 to 2007) have been spoilt. They expect a repeat of 2003-2008 now. But the period since 2008 had been a complete contrast in emerging markets. Emotionally, invesors tend to conect with the former much more than the later, though the later may be more important. And many investors think that equity is the only way to beat the street and keep ignoring other asset classes like Gold, Bonds etc. Many investors "Equate Investing with Equity Investing."

Investors need to step back from this kind of madness and take more measured approach. Ideally they need to invest in multiple assets. SENSIBLE INVESTING :

• Does not require ultra fast decision making.
• Requires patience, reflection, intelligent reading.
• Willingness to look at all asset classes with an open mind at times, proper asset allocation.
• Understanding of importance of staying on the side line and
• A determination to pay no heed to 'frenetic activity' of media views on investing.

Ideal time frame for equity investing is till such time market recovers back to deliver positive returns. Remember "Markets can remain wrong, longer than you can sustain". Hence invest that part your investment, which would not worry you, in equity-so that you could wait for markets to recover and deliver positive returns.