The most common question we as consultants are asked

nowadays is how to become rich in a very small time. However,

very few could achieve their target. Warren Buffet suggests, be
greedy when the world is fearful and fearful when the world is
greedy. The recent spread of Coronavirus or COVID 19 virus
spread is like that. If it is hitting the markets dearly, it is giving a
window of opportunity for the investors who believe in taking high
risk for higher returns. According to the investment experts, once
the effect of Coronavirus is gone from the global economy, quality
portfolios are bound to shoot up at a faster rate giving very high
returns in a very short time to those who dare to invest in current
Coronavirus hit economy. 

According to my experience, Financial market investments are

heavily dependent on smart moves and positive market
sentiments. Calamities and medical pandemics can dwindle
markets beyond control. The global stock market has been
tumbling, leading to a sell-off in most of the global markets. Stock
prices are also falling due to the fear that coronavirus will grow into
a significant international health crisis.

On the hind-side, the greater the risks, the better the profits are for
investors, but only for the ones with deep pockets. Retail investors
need to be cautious during such situations. 

the best policy for a retail investor is to play a long-term game with
value stocks to create wealth for the golden years of his life. With
the present flu in global markets, retail investors should not take
decisions in haste and do the following: 

1] Choose the right stocks to invest: Though the situation is

likely to remain volatile and temporary, but it is difficult to take a
call on market performance. Hence, it is very important to do
research. If you are a retail investor and have liquidity to invest, it
is suggested to wait for the moment and conserve until the end of
the global crisis.

In case, you have already made investments, it is suggested not to

sell stocks out of hassle and ride out this uncertainty. We can also
aspect the recovery to be very steep for stock prices and the
economy, hence, wait and watch is the mantra. However, the
importance of researching is very crucial during tough times.

2] Don’t buy travel stocks: Travel stocks should be avoided for

the next one year. Financial markets will take time to recover from
the scare of deadly coronavirus. The best bid is to avoid stocks of
travel companies that are focusing on South East Asian countries.
In case you are holding quality stocks that have kept a balance in
offering global travel destinations, it should be held for a longer
period of time. The stocks should not be sold looking at the current
market volatility. 

3] Don't make quick and panic driven decisions: If you think

you are holding quality growth stocks, never get hassled by market
movement. One should wait for the crisis to be over and done with.
It is always suggested to plan for the long term for better results.
There are chances that the recovery might take place in a V-shape
module and lead to better ROI(return on investment) in the longer
run. The key to making a handsome retirement corpus is to sit tight
and not sell in haste or without considering the impact. 

4] Mutual funds as an alternative: Timing the market has never

been an easy task. If you think you can devote time and energy in
researching for a value stock, only then we suggest to put money
in the stock market. Otherwise, the best is to leave the investment
decision to experts. In short, if you are time-pressed, go for mutual
funds. Also do not go with any mutual fund but choose them after
thorough research. Always review your mutual fund portfolio every
six months.

5] Choose the right financial consultant:   A right consultant will

see your risk taking capability and will help in designing baskets for
investors which suit your risk profile, taking into consideration the
market environment. Once this basket is established, the advisor
develop tools or baskets to which we can customize our needs. It
also helps in diversification of the portfolio.

Various investment advisors have developed algorithms

considering the risk profile of their investors. Algorithm based
advisory is not completely risk-free under the current
circumstance, but a better and safe bet than trading directly in the
stock market. You need to choose an investment advisory firm
which can help you gauge your risk profile and suggest you the
right tools for creating a nest for the future.
Again the starting and the final rule is only one~ research your
strategy well before taking any decision. Don’t Rush!.