I’ll start by saying that my view (as stated below) is not that of an expert and I would love to be proved wrong by scientists finding a cure for COVID19. But here are the facts relating to the virus as best I understand them.
- COVID19 is a sort of flu and is a viral infection. Viral infections generally have no cure in the sense that we do not have any medicines that can fight the disease. Bacterial infections can be cured by antibiotics but that is not true of viruses.
- It is unlike a sickness like measles which gives you an immunity from contracting the sickness a second time. A person who recovers from COVID19 has no immunity from falling ill again from the same virus.
- COVID19 is highly contagious.
- The mortality rate of COVID19 is much higher than other forms of flu.
All these factors have led to an unprecedented situation worldwide in which lockdowns have become necessary. Not only has travel been curtailed – both within and outside the country – but social distancing has become necessary. Offices are closed and normal life has come to a halt.
Globalization and even ordinary life of the average citizen has come to a grinding halt.
It is possible that a cure or a vaccine might be found for COVID19. In that case normal life might resume and it will again be business as usual. But what are the possible outcomes if that does not happen.
It is scary but is there a possibility of a lockdown for an indefinite period until either a vaccine or cure is found or until essential services and products (like groceries) are exhausted? I think that the Government will not choose that option. Rather than the entire population of the country starving to death it is better that we build hospitals dedicated to the treatment of COVID19 patients and treat them as best we can. It is not certain that we will die of COVID19 if we contract the disease. But it is certain that we will die if we do not eat.
As such (it might be too late now) but if you have any spare cash lying around it might be advisable to buy stocks of businesses that deliver services and products essential to the construction of hospitals. Insurance companies will be hit hard by the recent developments. If it is possible to short those stocks you can do so. But the window of opportunity may have passed for both these tips. This advice is no longer timely. It would have been so at the beginning of January this year. Trade at your own risk.
Businesses delivering products and services required for working from home will do well and should see a spike in profits.
There is a possibility of the restrictions being relaxed to some extent. Perhaps travel between cities and countries will be restricted but movement within cities is allowed.
There is a large section of the population of India which lives on a day to day basis. If they do not earn, they have nothing to eat that day. The government might want to set up relief camps for the boarding and lodging of the migrant workers. Businesses that supply goods and services necessary for such projects will do well.
So these are some tips relating to investing your spare cash in stocks. If you have any comments on what I have written please let me know
I hope you found this article interesting.
Please explore this blog for more articles on Politics, Spirituality and Self Help. If you liked this article then please share it on Facebook and Twitter and feel free to post your comments or contact me. Link to contact is below.
Find this handy. Buy me a coffee