By Uma ShashikantThe stock markets are crashing. What should I be doing?
Is this an opportunity?
Is it time to purchase already?
These questions are irrelevant. We are so used to the narrow definitions of up and down and think that the whole component can be summarised into basic movement points. The pandemic that the world faces is alternative.
So alternative from what maximum of us alive now have observed until now, and we are all still studying what to do.
First, the simplest aspect that things is the quantity of cash you have in hand. Understand that it is difficult for cash to be drawn from a falling stock marketplace, or for cash to be invested. Draw if you have no cash, even if it is at a loss. If you already have enough in the bank, stay put. This is not the time for any investment resolution.
Investing when the destiny is unknown is to undertaking into the unknown dark without a torch in hand—it is undeniable foolhardy. There is no smart timing decision to be made. We are literally in war zone, so survival is priority. Ensure enough coins to manage yourself and the circle of relatives and medications, for a length of three months.
Second, recognise that this is new territory. In the era of social media, there is too so much advice floating around. There are jokes to lighten the mood; and there are lifeless forwards. Hawkers of quackery should be ashamed of themselves. Train your eyes and ears on what has worked for countries that have suffered before yours got hit. Keenly pay attention what your government, local experts are saying. Social isolation is what seems to have worked in China and South Korea. Reduce social interaction; adopt isolation voluntarily; drop the bravado and awareness on prevention and care for yourself and your community.
Third, now not all businesses can near down. Many have purchaser interaction, production deliveries and team tasks that require the group of workers to turn up and be around to complete assigned initiatives.
There are emergency amenities that ought to paintings come what may. Businesses are taking a call approximately working from home, decreasing team sport, and in excessive situations, those have also shut down temporarily in affected countries. A comprehensive shutdown of all recreation has been the measure that brought the spread of the disease and the number of newly afflicted down. As an investor, know that this is a step with serious economic implications. Markets are panicking since this is unprecedented. Unless you run a business, don’t make any financial choices at this time. Don’t purchase or sell resources or adjust your investments. Stay put.
Fourth, do not hoard as if you are faced with a famine. Shutdowns have been implemented through governments for periods of 15 days, accelerated by means of a week or more as needed. Normalcy can’t be claimed to have again even in the most impacted areas, in spite of this the most effective valuable is that new numbers of afflicted individuals have begun to fall. If you organize for say 3 months of being confined to your home, you don’t desire part the super-marketplace in your pantry. Pull out those boxes of quinoa you did now not consume; that ragi flour you never opened; those stone cut oats you did not cook. To think you have to solve for existence as typical for yourself while the international is scrambling for gives is selfish. Buy responsibly. We aren’t walking out of sun, air and water.
Fifth, be grateful for the network and take charge. The desire for a helping hand is high when normalcy is affected, in particular for weaker sections. If there are elderly voters in your neighborhood, succeed in out to them. Make corrections for not caring about who lived next door. Without worrying and sharing, it could be difficult to ride through a length of isolation. Unlike floods that many of us have faced, this pandemic does not allow us to live together as a big group. Community solutions of cooking and staying together are unavailable to fight a disease that calls for isolation. Put the social media tools to use to attach and aid the community, via devising methods to reach out remotely and to manage cases as they arise, to be offering help and solace. Responding without crowding up is new to most of us, having said that we have no choice even so to learn it now.
Sixth, do now not obsess approximately the loss in cost of your investments. Do not hold forth that you saw it coming. There is the crucial difference between wealth and earnings; stock and flow. The wealth you accumulated over a lifetime in investments has eroded in value as the markets have crashed. But what matters recently is the income, the flow. Do you have a task that offers salary even all through the shutdown?
Are you optimistic you will maintain the job via and after this duration?
You are fortunate. Evaluate your earnings and arrange to hunker down and sacrifice it for a short period and still survive. Wealth will go back to its price after the crisis has blown over; if you have the privilege of no longer having to get admission to it now, live calm. Don’t preserve looking at market numbers.
Seventh, discover the positivity in you to be the adult the condition demands. If you have to volunteer to work for free at the within sight hospital, do it; if you have to be the one who creates an app in the neighborhood for eradicating delicacies waste in households, create it; if you can run a bulletin board that provides suggestions on how many are infected, do it; and be willing to go to yourself as a soldier in the field, willing to work for a larger cause. If you can find creative ways to maintain your family engaged as you stay in, do it. Read, write, quilt, cook, garden, repair, deep clean—there is a lot to do interior as a family.
Do now not make a buying list!
Eighth, drop the denial. The challenge around us is real, and the global has now not yet discovered a solution. There is no want to worry and panic. But it is essential to recognise that this is new, big, and absolutely unknown. A pandemic of this importance will call for movement and behaviour we have no longer regularly occurring in the past.
Drop tactical questioning and prepare.
(The author is Chairperson, Centre for Investment Education and Learning)(Disclaimer: The evaluations expressed in this column are that of the writer.
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