It has been over a month since India has not only shut its doors to the world and locked itself down but a lot of things have changed since the COVID-19 health crises gripped the entire world early this year. And after this lockdown as well, a lot more will keep changing. We have always known that life is uncertain! but now it has been proved beyond doubt that things are indeed reallyuncertain!
This pandemic is possibly one of the rare occasions where big as well as small businesses have been affected. And while small businesses with debt might find it tougher to recover, even in this cloud of uncertainty, there is a glimmer of hope. Everyone has come together and is working hard at finding solutions. Even the RBI has come forward to increase liquidity by reducing the repo rate. Of course, only time will tell what will unfold but the upside is that everyone is thinking of ways to keep the economy from sinking. And most people too, though stuck at home, are not sitting idle. Some continue to work as hard, if not harder than, before!
Speaking for myself, I have attended so many webinars that I’ve begun wondering if I have become busier than normal!
Staying at home has also brought families closer together (inspite of the fights and arguments!). I have started using digital video platforms to be in touch with family and friends, as have many other people.
I believe that such circumstances also provide an opportunity to reassess priorities.
Many business and individuals have started contributing to society. And hopefully, finding our humanity amid the pandemic will make a long-term impact even in the way we go about making profits. It may make people stop indulging in cut-throat competition, or creating a monopoly of products, and may even stop businesses from holding back payments unnecessarily! Good, ethical business practices post the pandemic will be a change for the better!
Being a jeweller and a financial planner, I cannot help but touch upon this uncertainty of markets too.
Equity markets have corrected due to fear and uncertainty but Gold is steadily rising. This is because this particular asset class has always had some negative correlation with equity markets. Given my background, I get to closely analyse both these worlds and having observed it, let me end by striking a cautionary note: Many of us may think that it is a great time to invest—but move slowly and choose wisely. Check both the risk and time horizon for the money you plan to invest. I would say that instead of focusing on returns, now is the time to first secure your family, your home and well-being.
That we will come out of this crisis is guaranteed. It is only a question of when. Until then, we need to find ways to stay safe, secure our families and continue to reassess how we can change for the better when things return to normal.
Anand Mhapralkar
Certified Financial Planner^CM
Anant Wealth 