Investing In the Time Of Corona Virus
Corona virus which is termed as Covid-19 is a virus that has brought about a lot of uncertainty globally because there is no cure for the disease and has is spreading so fast in many countries. This paper will look into how the virus has affected the current market, the uncertainty it has brought about and also what are the available investments that can one make in the short term and long term.
a. Market crash
The virus has had an adverse effect on the market as a whole mostly in the stock market, tourism production, supply chain, trade in commodities and transportation. This has brought about a crisis in the market and most countries are trying to identify measures that can be put in place in order to stabilize their economies. The market is also volatile causing price changes of commodities and liquidity problem hence making it difficult for most companies to pay their suppliers, employees and bankers.
Stochastic Portfolio Theory
The theory studies and attempts to explain observable phenomena that take place in equity markets in which market structure is analyzed under strong normative assumptions regarding the behavior of market participants. Hence enabling us structure a portfolio to take advantage of the current market crash.
b. Corona virus and real economy and long term and short term investment
There is a reduction in the economic around the whole world that has resulted into countries going into a recession which has resulted to the damage of financial stability. Most of the countries have decided to close schools, universities, businesses and factories causing panic to the whole world as these has not been witnessed for decades. There are available investments in the short-term and long term despite the uncertainty brought about by the virus.
We can conclude that corona virus is a disaster that has had a great impact on the global economy and has brought about a lot of uncertainty for most economists to come up with policies about the economy as it is not easy to predict events
Investing In the Time of Corona Virus
COVID-19 is a disease that only appeared in the public’s alertness within the last three months but has created horrific damage to the world market. According to WHO they have reported that corona virus has already sickened over a million people and killed several thousand people. The pandemic has resulted in the whole world enforced closing schools, factories, and disrupted supply chain, as a result, everything stopped working, also all countries shut-down their borders and traveling without any purpose is prohibited. The whole world is dealing with the virus which is growing stronger day by day. There is a huge economic loss for thousands of businesses because governments ordered to shut down businesses as a result people staying at home to stop spreading the pandemic. Many companies have financial risks and their value getting down, the most vulnerable companies during the crisis are weak companies which just entering the market and also heavily indebted businesses which have obligations. Corona virus can be termed as uncertain pandemic that is beyond human control, there is currently no cure for the disease hence causing fear among people on what is to happen next as business currently is not as normal thus most economist are having a difficult time to predict market analysis and forecast trends. This paper looks into the factors that affect the business market the current trends and even though there is a downturn in the market, there is a place to flourish which means that you can make a profit if you have a good strategy by investing in a short term or long term business. However the most affected market is the share market as there is a great drop in the share prices and also banks have been affected adversely this has led people to react negatively expecting the worst case scenario.