While the world is going through a major financial crisis due to the global slowdown caused by Coronavirus Outbreak, it could be a prudent move to invest some quick money in stocks. The previous financial crisis had raised almost the same situation as the high performing stocks were crashed, and once the market bounced back, anyone who bought the stocks during plunge made a significant profit in pretty less time.
The stock markets are crashed as the uncertainty caused by the deadly outbreak of Coronavirus led people to panic sell and leave the market to avoid any loss. Furthermore, the lockdown of countries has made a significant impact on normal financial activities leading to a recession-like situation. The NYSE and NASDAQ indexes are touching the lowest point within this year, along with some of the top-performing stocks. The NYSE has lost its value up to 34% within the month, along with other major stock indexes. Safe-haven assets like Gold and Silver are also affected by this global crisis and lost their significant values during a month. Along with the stock market, the cryptocurrencies are also facing a significant loss. One of the major cryptocurrency Bitcoin has been traded at $4.5K in March, which is almost 50% of the price it was traded in February 2020.
In a time like today, people usually do not realize and think about utilizing the fall of the stock market due to panic and uncertainty about the future. Nevertheless, the stock market crash due to the outbreak of Coronavirus could be a golden opportunity for the investment if we consider today’s situation from the future.
Should you invest right now or wait?
Most of the assets are still losing their values as there is no sign of recovery from this virus in the near future. Global economists are predicting a recession on the way. Economist at Goldman Sachs has forecasted about a huge layoff in April. Furthermore, they have warned about no quick recovery of this bearish trend. After China and Italy, the US is one of the most hit countries by this virus. The numbers of infected are continuously increasing, along with the death toll. The already WHO is working to find an effective cure to this disease, however, they are afraid to comment on the time it will take.
The current scenario and forecast are worrisome and force to think if waiting a little longer would be a better choice as the market may not recover soon. At the same time, we all know that the situation is already worsen enough, and it will not stay the same permanently. The reduced number of cases reported in China indicates that this issue is temporary and will be over soon. It seems confusing to make a decision about whether to buy stocks or not. But if we ponder over the past financial crisis and the current initiatives being taken by the US and other major economics to uplift and sustain the market, the current bear market could be a fabulous opportunity to buy some leading stocks at a pretty low price. Having said that, it is a wise idea to keep some cash in a tough time to avoid a crunch if this outbreak lasts a little longer than expected, or the market may continue to decline. The best choice buys some cheap stocks and wait as well. As in order to make the most of the current financial crisis, it is crucial to keep an eye on the movement of the market as well as improvement of the situation around the globe.