Unlock 1.0. Here are things Investors should do
When you face with Fracture in your leg and after due
treatment doctor advises you to live normal life as before!! Will you be careful and gradual
in getting back to normalcy or just do everything you do otherwise, from next
day?
You are likely to behave responsible!! You will gradually
move to lead normal life which will take another 2 weeks for you to walk fast
and may be a month more to run! Basically, here, doctor shifted responsibility
of prudence on you!!
Same will be the case in UNLOCK 1.0 for you! Central has
allowed many things to open and operate with final directives left to state and
local administration. So now citizens are made to behave responsibly!!
Government will not intervene in micro life management.
Before you start to live normal life, examine below:
1)
Has anything changed for good in last few days?
2)
Has Covid 19 cases reduced to zero?
3)
Are cases reducing in my locality and city?
4)
Have I got any Vaccine to save from Covid 19
5)
Is medicine being found?
6)
Has the infection rate and strength reduced?
7)
Hotels and restaurants will open, will you go?
8)
Religious places will open, will you go to
worship?
9)
Malls will open, will you go shopping?
10)
Trains will ply, will you take travels or avoid
as far as possible?
If answer to all the above is not Yes, you know what you
must do!!
Unlock 1.0 is manifestation of the erstwhile Green and
Orange zone concept. Administration wants citizens to use prudence and chart
their daily life. Almost everything will be open but should you splurge will be
your own decision!
Coming to Investing now. That’s what you look up to me for😊
Market may scale up in next week, cheering Unlock 1.0.
Market will view it as light at the end of tunnel and will start factoring in
end of Lockdown sooner or later.
My suggestion would be to stay on course with your investment. Do not jump into investing aggressively. Spread Investing across 5-6 month time frame. Do not worry if market goes up substantially. Market is yet to find many answers before it could take direction. In fact, I am of the opinion, if market goes up, I would rather ease my equity holding and build cash buffer to take opportunity/bottom fishing. I am sure market will present opportunities surely😊
Top 5 states with respect to number of cases are also economically
important for our GDP growth. These top 5 states are Maharashtra, Tamil Nadu,
Delhi, Gujarat and Rajasthan. UP is largest labour supplier state is at number
7 but likely to feature in top 5 very soon.
Fundamentally,
market will seek clarity on
1)
Exit of Lockdown. Opening of entire supply
chain.
2)
3rd Phase of infection and response
to it.
3)
Ramping up number of tests
4)
Possibility of return of 2nd wave of Covid
19. We will learn from global peers.
5)
Demand outlook of consumers
6)
Solvency of enterprises
7)
Job loss numbers and salaries
8)
Return of labour to industries.
9)
Global demand and economic outlook
10)
Geo political development.
11)
Possibilities of Global recession
Do connect with me if you wish to know, what is our investment
strategy for you!!
If you find our blogs helpful, please do like, share and
comment
Author –
Bhavesh
D Damania
Founder
& Chief Care Taker - Wealthcare Investments
EduPrenuer,
TV show panellist and Blogger
You
can reach him at 9833778887 and wealthcarein@gmail.com
"Risk comes until you know what, where and why you are Investing”
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