CORONA VIRUS AND THE STOCK MARKETS

Corona virus and the stock market

Stock Markets are going down because of the panic created the deadly virus COVID-19. Now this virus spreaded over 75 countries and over 95,483 thousand cases are reported according to recent reports. Last week the complete global stock market saw the sharp falls in years because of the corona fears.

So some common our common questions are

• Should I take all my money out of of share market?
• Will the stock market crash?
• Can I make new investment now?
• Is this an oppurtunity to buy good stocks at low prices?

CORONA VS STOCK MARKET

Also read: Why should i invest

Why stock markets are falling

            The spread of global deadly virus (COVID-19) create huge panic in the market. Investors have been selling their stocks to get their money out of the market, or into safer investments.

            The  reason behind this  fall in the stock market is not only the panic created by corona but also the other factors.

            The stock market are being declined because some of the the stocks are overvalued. This means the market correction is also the reason for the decline.

Will stock market crash

            We can’t say that the stock market will crash because of the deadly disease corona. This corona virus panic replaced the panic of global economic slowdown. This panic is temporary.

            Initially market reacts to this panic and saw the sharp falls in January and February, but now it is bouncing back. I m not saying it won’t go down but the market sentiment is changing positive. This implies that investors didn’t see corona virus as a serious threat to corporate earnings. So obviously the market will recover.

Is this the right time to get good stocks at low price

            Obviously my answer is YES, because this is an opportunity to buy good performing stocks at low price. Since there are no problem in their operation and their management is good, if the stock price go down then automatically they will come back with strong plan to revive. Only thing we have to do is invest in good companies that came down  because of this panic and have patience.

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful”

- Warren buffet

What will happen next?

          Actually no one knows but only thing I can say is panic is temporary in market but the growth is permanent. So invest in right stock and have patience.

Happy investing