If you take any interest in the stocks and shares market in India, you will surely have heard investors complaining that their investments have taken a sharp dive since the coronavirus (COVID 19) pandemic began to disrupt human life on earth.
PLUMMETING MARKETS CAN CAUSE HUGE LOSSES FOR CURRENT INVESTORS
Since last week, up to 20th March 2020 Friday, the Sensex nosedived by 4,187.52 points (12.27%). Similarly the Nifty dropped 1,209.75 points (12.15%). Looking at these figures, it is no wonder that investors are crying at the moment. If they were to sell any of their equity now, they would most likely take a huge loss. It is entirely the wrong time to be selling. Those who were ahead of the game, and who seek to limit loss by selling as soon as the markets drop may have already disposed of many of their assets by now.
WORST FALLS SINCE 2008
“The stock market is a device to transfer money from the impatient to the patient.” This quote comes from one of the most successful investors of all time, Warren Buffet. The quote applies to stock market trading in general, but it is particularly applicable in times of uncertainty such as we are witnessing at the moment. Siddhartha Khemka, the Head of Retail Research at Motilal Oswal Financial Services mentions that the indices saw a slight relief at the weekend, but the overall scale of the plunge is something we have not seen since October 2008, almost 18 years ago. You may think that during this turmoil is
ONLY A TEMPORARY DISRUPTION
While the markets are in disarray at the moment due to the uncertainty of the situation with COVID-19, it is certain to be a temporary situation. Looking back into history we can find many examples of when the markets tanked due to disruptions and uncertainty.
1997: The Asian Financial Crisis
1998: The Russian Financial Crisis
2000: The bursting of the dot-com bubble
2001: The destruction of the World Trade Centre in USA
2004: The fall of the NDA government in India
2008: Global financial crisis involving the collapse of the Lehman Brothers and Merrill Lynch empires
In all of the above cases, the markets were unstable for some time but eventually made a recovery. We can look at past history in order to predict the future. There will normally be some companies who can not bear the disruption and will fall by the wayside, but for those who can bear it out, they will eventually see a return to normal.
A RARE OPPORTUNITY FOR NEW INVESTMENT
While those who have already invested may be grumbling about the state of things, this provides a rare opportunity for newcomers to invest in Indian stock markets and pick up some bargains while they are available at prices rarely ever seen. How long will it be before the COVID-19 crisis comes to an end? This is something that nobody knows at this moment in time. If anybody claims to know the answer, they must be considered a liar. We are in a period of unknown, and it is this ‘fear of the unknown’ that sends shivers down the spines of investors. If you are someone who was previously considering starting to invest in the Indian share market, this is a very opportune time to take that step. Some of the best shares are available at throwaway prices. Or perhaps you would like to try commodity trading? It could also be an opportune time to Invest in the commodity market. After all, the demand for commodities will always be there.
HOW LONG WILL THIS LULL LAST?
If anybody knew the answer to this question, he would be able to make himself a fortune. In fact nobody knows the answer, because we don’t know how the spread of COVID-19 virus will continue. We may be over the worst already, or we may be only in the early stages. What happens next will depend on how different countries manage to contain the virus, how pharmaceutical companies perform in developing vaccines, treatments and testing solutions. We can only guess as to how much further the markets can fall before they begin to take an upwards turn. One thing is for sure; those who wait and wait in the hope of getting even greater bargains risk ‘missing the boat’, as history tells us that the markets always recover before too long.
TALK TO THE PROFESSIONALS TO KNOW MORE
As the situation is changing day by day, this article will be out-of-date within a short space of time. Professional brokering companies in India such as GOODWILL are monitoring the situation 24/7 and keeping themselves abreast of the current happenings regarding COVID-19 coronavirus and the stocks and shares markets in India. They are ready and willing to speak to concerned investors or potential new investors who are looking to take advantage of the unlikely opportunity that is currently available. GOODWILL INDIA can be reached on “+91 80122 78000” for all your trading questions and doubts. They provide free trading accounts and demat accounts, handy mobile application for trading on the move, free training sessions, and various other valuable bonuses which make them among the best commodity trading and broking firms in India. Don’t delay, call today and don’t be among the dawdlers who will miss the boat.