COVID-19 & The Equity Markets

COVID-19 & The Equity Markets

Had someone told me a month back that equity markets would come and touch 28000 , I would have laughed it out and wouldn't have paid any heed to same but as they say only thing certain in equities is UNCERTAINITY and that holds true even today.

The reality is we are down 30 to 50% across caps and indices and we do not know when and how will it end and some of us have started panicking  looking at this and there are talks and facts proving this to be the biggest menace / fall seen by Gen X and  millennials which is possibly true  but the biggest question in everyone's mind  IS " CAN THIS LEAD TO

#Dooms day

#Will world come to end

# What to do with my investments

#Will the world not revive back

The answer to all these questions lies in the biggest underlying fact that whether we accept it or not , we are still one of the very few economies which is still growing at 4 to 5%* and will continue to do so for next few years to say the least and this all is a happening in a relative world which is struggling to grow

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The fact also remains

Corona will eventually fade off ( Only question is whether it happens in next 30 days or 90 days ) and no one has an answer on same

Corporate results will eventually bounce back ( Again the question is do we have patience to wait for 2-6 quarters for things to stabilise

Foreign money ( now with unprecedented liquidity ) will eventually chase markets and companies which are growing at a much healthier rate and India and its corporates do stand out in that pedigree ..Again the question is do we have patience to wait till it happens

The biggest question as equity investors we need to ask ourselves is

#Do we believe in our economy and our country which is still one of the best in the world

#DO WE HAVE PATIENCE ANE COURAGE TO GO THROUGH THIS TURMOIL AND LET ME STICK MY NECK OUT AND SAY ,

IF WE ARE ABLE TO DO SO WE WOULD COME OUT A LOT MORE WISER AND PROBABLY PROFITABLE

Possibly , this is the time to look at biggger aspect of ensuring we keep ourselves and our families safe by distancing ourselves socially

This shall also pass through and we would see a much brighter sun on the other side

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