We are seeing the impact of corona virus on equity market across the world . India is off course no exception as well .
The coronavirus outbreak halted trade , tourism , consumption and many other activities. The effect of this outbreak may push China’s economy into a period of dull growth for some time. Will it impact other economies further? …Yes if it spreads further…..Will market falls further? …..certainly if virus stays longer.
Markets alway give knee jerk reactions for any positive or negative events . It is always overdone in the market .
Long-term investing is often best disconnected from short-term economic reactions.
We have seen such epidemic outbreaks in the past . Below table provide the sense of market reactions following major epidemics in recent history.
Carl Richard has nicely depicted current scenario in his famous sketch BehaviorGap
We have written on couple of times on different events whenever the market corrected in past .
- Market is falling …Again ???
- Part II : ” It’s different this time …….Time will only prove it !!
- It’s different this time ……..Time will only prove it !!!!
- Market crashed!!! Be Happy !!!
CoronaVirus will be history after few months . You need to decide where to focus on CoronaVirus or Karo Na Invest !!!