Is your portfolio flexible enough to bear COVID-19 market crash?

Hardly must it be a matter of 3-4 months ago when analysts were publishing their positive outlook, reports, and expectations regarding their portfolios. However, after the outbreak of coronavirus to almost every country in the world, those positive results and expectations seem like fancy data. Everyone knows stock markets around the world are bleeding, and maximum stocks are trading somewhere around their lowest price.

The stock market is going through the “BLACK SWAN” event. This term is given by
Nassim Nicolas Taleb. This event describes those rare and extreme events that are unpredictable. So, is the case with COVID-19. No one has ever dreamt of, COVID-19 will turn into a pandemic and would affect global markets so harshly. In just 3-4 months, the market has fallen by 30-40% and still declining.

Every analyst or expert is commenting: it is the right time to invest in share markets or equities. Undoubtedly, this opportunity arises once in decades. However, this is an excellent and smart opportunity only for those investors who are holding a high amount of cash, and their business will not get impacted due to COVID-19. Even if you have a surplus of funds, then also, it is suggested to hold cash as a future is something very unpredictable.

During the times of such a crisis, it is better to focus on previous investments. Do not hush to do a fresh start for new stocks. It is advisable to check flexibility in your current portfolio and sustain it.

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