Winning by doing nothing

If there's one thing that doesn't change in the topsy-turvy world of investing, it's the uncanny ability of global events to trigger market panic with clockwork reliability. The latest illustration of this timeless pattern comes courtesy of the trade war unfolding between the US and almost everyone else. As tariffs fly back and forth like diplomatic hand grenades, the Indian markets display their customary nervousness, with the Sensex performing what financial journalists call a 'nosedive'. What fascinates me about these events isn't the macroeconomic analysis or geopolitical posturing but how predictably we react as investors. The moment markets tumble, our evolutionary fight-or-flight responses kick in, urging us to 'do something' - anything - rather than appear passive in the face of perceived danger. Yet this instinct, so valuable in evolutionary times, becomes our worst enemy when navigating market volatility. Suggested read: The cycle inside your head Consider what's happening: President Trump imposes sweeping tariffs, markets plunge, China retaliates, markets plun