Indeed, with the Coronavirus pandemic, businesses may not be doing well especially with the lockdowns and interruption of supply chains. As you may be aware, stocks represent ownership interest in a company, which provides investors with the opportunity to make profits either through dividends or capital appreciation. the stock affects the investment of the shareholder. In other words, when the stock’s value decreases, the investment also loses its value.
The continuous price decline has presented investors buying opportunities, since they can acquire the stocks more cheaply. However, the stocks might take a longer time to recover. Therefore, if you are buying into the stocks, do it for the long term. You have indicated that there are stocks you are looking to invest in. This means that you have a watch list. Watch lists help investors monitor and spot investing opportunities in the stock market.
On the other hand, stocks whose prices have continuously been declining while its peers are stable or appreciating are a red flag. If you are interested in the stock, understand why the price has been declining and ask yourself what other investors are seeing that you’re not. Buy a stock whose price you think will improve after the crisis. A common mantra among investors is “buy low, sell high”. You should also look at the returns you stand to gain with the stock once the situation improves.
The corona virus pandemic has rattled global economies and triggered an across-the-board sell-off in equities as an asset class. Since the first corona virus cases emerged in late 2019, global markets have sharply fallen. The Dow Jones Industrial Average (DJIA) and the S&P 500 ended their 11-year bull-run—the longest ever in history—as the S&P BSE Sensex and the Nifty 50, too, entered bear-market territory with a fall of over 30 per cent each. A fall of 20 per cent or more in a stock, or an index, is typically regarded as a bear phase for that traded unit.
