Investors are grappling with a volatile stock market, but finance expert Akshat Shrivastava has a clear takeaway — every asset class is cyclical, and timing the market is key. In a detailed post on X, he said that those who ignore cycles in equities, gold, and real estate are setting themselves up for poor investment decisions.
“Most people did not bother about gold pre-2020. In 2025, everyone (including me) wants to own some,” he said. “As you study different asset classes, you realize fairly quickly that every asset class is cyclical—right from India stocks to US stocks to gold to real estate. The goal of investing should be to time this cycle.”
Taking a dig at conventional wisdom, he questioned the belief that markets should not be timed, pointing to Warren Buffett’s record-high cash reserves as proof that even legendary investors wait for the right moment. “Now, many would say—oh but, Mr Buffett said: don’t time the markets. Okay, look what he is doing now? Sitting on his highest-ever cash positions. Why is he hoarding so much cash? Because he also times the market.”
Shrivastava’s message is clear — trust no one blindly with your money. “No one cares about your money the way you do. So learn how to manage it better and become an independent thinker,” he said.
The market downturn has reinforced the appeal of gold as a hedge against volatility. As equities continue to decline, domestic mutual funds poured a record ₹3,751.42 crore into gold ETFs in January 2025, a fourfold jump from the previous year’s average inflows. Experts suggest maintaining a diversified portfolio to navigate unpredictable markets.
Financial planner B Padmanaban recently cautioned that while gold and equities often have a negative correlation, their price movements are not always inverse. “Contrary to expectations, there is no inverse relationship between gold and small-cap investments,” he said, citing historical trends from 2003 to 2008, when both asset classes moved in tandem.
Meanwhile, Dalal Street continues to witness heavy selling, with the BSE Sensex losing nearly ₹25 lakh crore in market capitalisation since September 2024. Rising US bond yields, a falling rupee, and subdued corporate earnings have further dampened sentiment. However, analysts like VK Vijayakumar of Geojit Financial Services expect a market recovery in March, urging long-term investors to accumulate quality large-cap stocks.
