Is Coronavirus Market Crash a Good Time to Invest?

By Aveek Pal chaudhuri Monday, 30 March 2020


Aveek Pal chaudhuri

During the fearful events of COVID – 19, the stock market has crashed and landed western capitalism to dreadful days. However, experts predict after COVID – 19 hazardous days it will not be the same. Since February 24, the Sensex has receded 36 percent or about 15,000 points. Investors who are new to the arena and small investors have witnessed the loss of money and faith in the market. In turn, they have started suggesting friends and family to stay away from the stock market. And it is graving news for the asset management and wealth management companies. Though before COVID – 19, the economy got a glimpse of structural breakdown with passenger vehicle sales dropping by 15 percent in April-February 2019-2020 from the previous year record.

Amidst all ups and downs in the market, experts have presented proof that stock quality actually shines through changing waves. As in 2008-2009 crash, quality stocks broke, but the high of 2008 till the present crash, the Nifty50 has generated a 2 percent return per year. Stocks that were part of the Nifty100 Quality30 index gave a 17 percent average return in this period.

Stock experts claim it is the time to utilize by building a standard portfolio of quality stocks. A powerful business tycoon viewed that Coronavirus is a short term event and investors could use the present fall to gather stocks and get returns in long terms. Another one said that investing in domains that were not being leveraged in that past or are leveraged at present and have growth potential would yield more return in the future.

Many believe that investing in companies that are yet to mark their name in the market is the key. Online investment is one way of getting profitable returns. While investing online, one must select ‘Direct Plan’ action for making any transaction. It does not involve any broker in the process.

Not following the words of the experts, there are some of the measures you can take as reports suggest it is better not to invest now.

It is not easy to make money out of a falling stock market. Count the cash in hand for buying valuables for yourself and family. If you have enough cash, don’t draw more from the bank. Do not invest when the future is not known as now we are living in a time when survival is the primary and most important thing. Keep cash ensuring you can buy essentials for atleast three months.

You will find a lot of things posted on social media sites which might allure you to make sudden decisions. Stop and don’t take any decision out of social media posts. Listen to what the government is saying and what local authorities are describing to defeat this life-threatening virus. If you are not increasing your life span by doing so, how can you invest and make profits in the future?

If you are not a business owner then don’t even think of investing in this treacherous time. Some businesses will be operating which provide daily needed products and emergency services. If you have no idea on business or do not understand the economic conditions thoroughly, halt investment plans. There will be a time when you will make plans for investment out of sheer instinct after coronavirus is defeated. You will make profits also.

Stay grateful if you have a job and it is paying you even during the lockdown. Don’t look at the market numbers and take subtle decisions. Instead, reach out to the unprivileged section of the society and help them. Later you can invest and earn at will.

Scientists and researchers are yet to find a solution – vaccine for the coronavirus. Think strategically in this period and save more – literally whatever you can with eyes on the future investment. You can even start a business later and make it big.

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