The spread of the coronavirus pandemic globally has had a severe impact on global stock markets. With over 242,000 infections and 10,000 deaths, the epidemic has drawn comparisons with painful periods such as World War II, the 2008 global financial crisis and the 1918 Spanish flu outbreak.
Most markets have slipped down 20 to 30 per cent plus, with individual stocks lower by anything up to 50 per cent. As an example, on March 19, the entire US airlines industry had seen its combined market worth fall to $51 billion. This for an industry that had used $39 billion over the last 5 years for share buybacks.
As always happens in large scale events with increased uncertainty, not only risky assets but even so called safe haven assets like gold have seen a fall in prices. Only cash and that too US dollar cash, seems to be the king for now, as all assets, from stocks to bonds to government securities to currencies to metals and other commodities fell sharply.
As all of us are grappling with an uncertain medical event of the coronavirus, markets have started discounting widespread economic destruction due to this and have fallen hard and fast. The market gave no warning on Feb 19, 2020 before it started its fall, to become the fastest ever bear market in the US. Very few investors had a chance to pull out their funds in time and even now most retail investors have stayed invested. The 2008 experience has shown that, the stocks that fall the most, on average don’t recover the fastest. Rather it is the stocks that fell the least that will form the nucleus of the next bull run.
Diese Geschichte stammt aus der April 2020-Ausgabe von Outlook Money.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der April 2020-Ausgabe von Outlook Money.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Stay Ahead Of AI-Powered Cyber Fraud
AI has become an integral part of our lives, right from customer service at banks to insurance claims. But it has now become a powerful arsenal for the fraudsters too who are increasingly using AI to scam individuals and corporations alike to commit fraud. The key is to stay vigilant
Travelling To Europe? Pack In The Essential Covers
Smart travellers must know that insurance is a must-have. From essential health coverage to theft protection and trip interruptions, know what you need for a worry-free Europe trip
How To Spend Wisely This Year-End
We all spend during the year-end. But the trick is not to overspend or borrow, either from friends, or your own investment, to fund your indulgence. Maintaining balance is the key
Travel Now Pay Later (TNPL)
Travel now, pay later (TNPL) is a close cousin of the more popular buy now, pay later (BNPL) schemes.
12 Books Devina Mehra Loved Reading In 2024
Listing books of her choice, among the ones she reads during the year, is ace investor Devina Mehra's favourite year-end activity. She says it's a daunting task to pick around 12 books from a list of 50.
Here's How To Avail Of Ayushman Bharat Yojana
Launched in 2018, the Ayushman Bharat Yojana aimed to provide health coverage to targeted benefi ciaries from the Socio-Economic Caste Census (SECC) 2011, based on deprivation and occupational criteria.
'Focus On The Business, Assess If You Want To Be A Partner For 10-20 Years'
Professor Sanjay Bakshi, a value investor, behavioural economist and adjunct professor at Flame University, Pune, gives his unique perspective on how to choose a stock, in an interview with Nidhi Sinha, editor, Outlook Money, as part of the Wealth Wizards series. He also shares his learnings from role models Warren Buffett, Charlie Munger, Benjamin Graham and others, and how being a chartered accountant, economist, investor and teacher make him into what he is today. Edited excerpts from the interview
The New Trump Card For IT, Pharma
Donald Trump has been re-elected as the 47th President of the US after a gap of four years. Here's how it will affect the Indian markets and how it will benefit sectors such as IT, pharma, export-oriented sectors and others
European Sojourn
Tight on budget? Dump the popular European destinations for the little-known wonders that are equally attractive
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.