I lent a friend money. Here's where it went

A few months ago, I had lent money to a friend, which he was supposed to return six months ago. When the due date arrived, he requested an extension.
Curious, I asked why. After some hesitation, he finally admitted -
- He had the money but didn’t want to withdraw it from the stock market!
- With markets hitting new highs every day, he was convinced that holding on longer would make him richer!
- He even offered to pay me extra interest if I agreed to the extension!
I was taken aback. Tried explaining to him that the markets don’t move in one direction! Notional gains can vanish overnight, turning profit into panic, but finfluencer hype had him hooked.
After a few follow-ups, he finally liquidated some holdings and repaid the loan. But honestly, the whole experience left a bitter taste in our friendship.

We weren't in touch since the incident, until yesterday, he called back - this time, to apologize.
- With the recent market correction, his portfolio is down by over 30%!
- Had he not repaid the loan back then, he would have struggled to return it now!
- With no liabilities, he can now withstand the downturn 'calmly'

This isn’t just his story, it’s the story of many investors today, who invested without any homework! In a bull run, random stocks can give amazing returns, it seems like a one-way road! The so called analysts would paint a picture like anything you touch would become gold! FOMO kicks in and suddenly everyone is buying without worrying about the fundamentals.

Always remember -
- Markets don’t only go up, they can fall at a much faster rate!
- Do your own research - not just follow the noise!
- Understand risks before investing, not after losing money!

And the most important tip is that money lost can be earned back, but broken #relationships are hard to fix!

If you are looking for any advice on #PersonalFinance, #Taxation, #CreditCards, feel free to reach out to me!