CORONAVIRUS: WHAT IS IT DOING TO THE MARKET
The global
pandemic caused by the COVID-19 has terrorized nations to its core. With cases
increasing every day, countries are quickly enforcing nationwide lockdowns to
prevent further spreads. This means that businesses, in particular, and stock
markets, in general, have taken a severe blow. The graph below shows the
affects this pandemic has had on major industries:
(source: neilpatel.com)
It’s no surprise
that the Travel industry is the most
brutally affected since the lockdown has put a full stop to all travel-plans in
the near future. The Media industry
has benefitted the most because a scared and hopeless audience has no other
source of information than the television and news outlets which are constantly
in the search for new content.
This pandemic will
have long-lasting affects and businesses will stumble for an extended period of
time to make up for the losses they are facing. Companies had to shut down
operations, yet still pay their employees during that period but not all
companies have that much reserve balance. They will be dealing with those
losses by laying-off employees or cutting their salaries. It’s projected that
in total COVID-19 will cost the global economy $2.7 trillion.
So what can a marketer
do to strengthen his position during this time of economic crunch? Double-down.
Yes! It is actually suggested that while other businesses are slowing or
shutting-down, it is actually the best time to place all your cards on the
table.
Warren Buffett has
said “Be fearful when others are greedy and
greedy when others are fearful”. So now is actually the best time to place
all your bets and gain your share in the market. Your results will come to you
slowly but they will come surely! So don’t be fearful when others are and make
your move. Here’s hoping this pandemic vanishes as quickly as it came. Until
then, stay home; stay safe.
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