In this article we can explore the Corona Virus and Stock Market Impact.
We are getting lot of queries on:
- Whether Recession started?
- Can I sell my holdings to stop losses?
- Which stocks to Buy now?
- How long the Corona problems persist?
- Is it a starting of Robotic era?
Don’t Panic!
is the first thing I wanted to say.. If you get panic, you will take bad decisions, your immunity goes down & bad for your wealth & health!
Corona Situation
Clearly it has started a Recession – but our Calculation is that the First Relief comes in 3 months – due to multiple factors like quarantine effect, cure arrival, climate change etc.
(already the growth of cases is reducing & stock futures are up – so this may not go worse that much; see MIT study LINK)
The Currently Impacted Sectors are BEACH:
- Booking businesses
- Entertainment businesses
- Airlines businesses
- Cruise businesses
- Hotels businesses
All the employees from above sectors will have Immediate Impact.
Note If the situation last more than 3 months then IT & IT enabled sectors will also see employment troubles.
Take care of Health
As the first step one should follow the Quarantine order of Government, Sanitize regularly & Maintain social distancing.
Jaan hei to Jahaan hei!
Take care of Wealth
I am repeating this in our sessions too, Keep aside 1 Year Emergency Fund. This can come in form of Gold, Fixed Deposits & Liquid Cash.
Once you have the 1Y EmF ready then there is no need to be Panic!
World is not going to end in 1 Year – Keep Hope!
Job Strategy
If your Job is going to be in trouble, make sure you spend time on Up-scaling Skills, Doing Certifications, Acquiring knowledge etc.
Moratorium or Not
One can avail the Moratorium of RBI, if you seriously need it.
But keep in mind that it will increase your Interest Payment for 3 months! LINK
Worrying is a Waste of Time!
No matter how much you are going to Worry or Pray – Situations are not going to Improve – It will Scientific Approaches & Healing Time to cure the situation.
One should be Smart enough to be Safe as well as Gain from the Situations!
Stock Market Strategy
Do not check your portfolio on these days – as it is going to be miserable. Now the time changed & you should change the strategy too.
Robot @ Work
There is controversy on Corona that it is Man-made to push Robots! I would say Robots are already there & lot of Manufacturing companies are using it to replace Human Labors. This is a Threat to Human Laborers.
India should also join the Robot Era take care of Training human labors to higher-human-intensive tasks & leave the mundane & dangerous manufacturing tasks to Robots. This is the only way to Cost-efficiently & Mass-productive Compete against China & Rise as a Manufacturing Titan against them.
Same way Computer Revolution was adapted by India ahead of time in 1990s which made us Progress in GDP than mere farming, India should adapt Robots.
As informed earlier, for the Corona Virus and Stock Market Impact you can find our Recession Strategy report HERE.