How to deal with biological wars - HMPV virus (Impact on Indian stockmarket)đ»
- Growthsquad
- Jan 4
- 2 min read
Panic create karu ya facts batau? China mein naya virus mila hai wese toh har saal milta hai but this time its already fearing to be a epidemic - this is highly dangerous for kids below 14 years and it spreads with air - so contamination can be quick.
What will be the impact on Global StockMarkets?
Unless it becomes a pandemic, Indian markets may not show significant fear. Infact whenever china as country faces some issues, Indian markets count it as opportunity. This is due to export opportunities are highly opened for Indian companies that china may not be able to capitalise.
During the time covid 19 was still an epidemic, Indian markets were touching new highs for the same reason.
What if it does become a pandemic eventually?
The issues can be highly on global levels, as many economies are still struggling with impact of inflation post covid.
Remember during COVID, many countries like US have printed huge money and that is still yet to be neutralised in global economy perspective. While another pandemic, will push us far below in stability of global economy.
In such scenario, keeping close eye on healthcare and pharma stocks can be beneficial to investors.
Some other opportunities can be found in industries like export focused industries like electronics(tech)/manufacturing, rice, chemical, etc.
However, we donât want people to commit early on any investments. China on regular basis faces such crisis every year during winters, unless thereâs clarity on this situation turning into pandemic or threats of lockdowns. Itâs better to just eat 5star and do nothing out of FEARđ.
What NOT TO DO in such markets ?
Panic Sell. Understand that even if stock prices of companies you hold may take a hit at huge levels, however what you have to focus on is âFundamentalsâ. Does company have enough resources to survive this rough phase without fear of shutting down? If yes, buy the dip.
Sit on cash, and allow yourself to keep having on and off hedge positions in market.
Thereâs a high chance, NOTHING happens and itâs all fuzzy. Afterall itâs china, we only get news that govt wants us to see and get into fear.
Pro tip, before investing in market make sure you have emergency fund prepared for yourself. For people who donât have knowledge on âEmergency fundâ - please refer this webinar : https://www.growthsquad.in/webinar-archives?pgid=lw4u0z06-bbf5137b-1acb-4a15-b113-407105b96f47
Typically everytime thereâs been a pandemic, markets have recovered sooner than people expected it to. Initially in 1930s, markets took longest time but with every new pandemics - markets learnt to absorb its impact and recover like batchkey. So selling your fundamentally strong stocks is never a answerđ°
Above stockmarket, we hope all everyone stay healthy physically and hold on to your wealthy portfolio.
Regards,
Team GROWTHSQUAD SEBI Registered RA no. INH000017763