February 24, 2020
In our communication of 16th February, we had cautioned against the spread of coronavirus and its probable impact on stock markets. With this epidemic now converging into pandemic and spreading across continents, this fear seems coming true. This epidemic has caused 5 or more deaths in South Korea & Italy and reporting more than 800 infected people in South Korea and over 150 in Italy.
This has for sure impacted output and sales for the current quarter for already reeling world economy. But real assessment of the probable loss and amount of time and efforts that will be required to recover from it will be known once this come under control and life travels back to normalcy in affected geographies.
Major markets across world over fell by over 3% today. Indian markets also joined them and were down by almost 2%. Indian markets are down by over 4% from their peaks. We reaffirm our position – this might turn out to be a black swan event and cause considerable losses to stock markets in short term.
And never forget “Adversity offers Opportunity.” Those who have the guts to ride the wave will surely taste its fruits. So keep looking for such opportunities this adversity is offering.