When the market falls, Diversification may also not help.

When the market falls, Diversification may also not help.

I was just wondering today about some of the future expenses I need to undertake, and I think it is a very rare scenario when I actually think about the money or coming expenditures because I always keep a surplus or you can say that I keep enough money in my account, that can met my basic expenses and Loan EMI for at least 6 months. But there are some other expenses that I have to incur next month (which I did not plan earlier.), and on top of it, I emptied my salaried account for some quick gains (but still sane enough to keep 6 months EMI money saved.) Actually I will come to later on that where I have diverted my funds but recent market crash really make me think that I have taken a risky decision.

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I am wondering if I have put my money into the crypto or Bitcoin, then definitely I will be in loss of my capital if I invested my money in crypto. Definitely due to volatility of the crypto I did not took and I guess I will not take this decision but there are really many scenarios that can lead to these scenarios for example I am expecting SPS to go up and keep going up until launch of Escalation set, but SPS after crossing .08 cent, fallback to .07 cents and there is now loss at short terms.

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Precious metals were always took as safe bet and to be honest after USD bills, every country keep their reserves in the Gold but in recent time both Gold and Silver went up in the price and suddenly get into good downtrend. I hope in this case someone has not invested in the top in hope that it will going to keep climbing with the money that is needed in the few coming days.

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Anthropic AI development and announcement has caused mass selloff in the Indian IT stocks and it was more than 8% down in a single day. Actually Indian IT stocks were in continuous pressure after tariff announcement by Trump administration because Indian IT is service exporter and generate most of their revenue and profit from US market. It was recovering especially after the recent deal of the "reduced" tariff. It make sense to put some money in it, as it is recovering but unfortunately current AI news vanished all the gains in a single day.

Luckily, in my case, I had not invested in any of the above for my "short gain". I had invested in a banking stock and current it is above 2.5% from my purchasing price, so I am not at loss and having a little profit too. Another stocks I had purchased is in energy sector and for claiming the dividend. Since record date of the dividend is now already passed and I am now still in profit so I am currently good. Though I need this money in month of March but I guess with all the "unexpected" downtrends I will take my capital out and will not wait till March now.

I will say, when you take investment decision, whether it is short term, it will be fine but do not make investment decision in such a way that may "compel" you to take the capital out irrespective of the market condition and with the above scenarios, I do not feel that we can consider any asset class safe.