Fear of the Coronavirus has gone pandemic. Soup, disinfectant and video games are being bought in vast quantities as people prepare to self-quarantine themselves from the Coronavirus. Yet, where there’s fear, there’s money to be made and some companies are expected to benefit.
At his height in early 2012, he was worth US$32 billion and ranked as the seventh richest man in the world. But by July 2013 his wealth had plummeted to US$200 million. And by 2014, Bloomberg reported that he had a negative net worth.
Demonetisation was a bold move, but it failed in its objectives. It’s also questionable whether it helps speed up India’s journey towards a cashless society. What’s more interesting is if widespread usage of a crypto-currency emerges. But it could mean that black money and terror funding will still continue in India.
So what is the best forward-looking way to protect yourself against the next correction? I strongly believe you need try to understand the company’s fundamentals. This is tricky if you’re invested in an index. But if you don’t, you’re not really taking market risk seriously.
There are many way to look at risk and you can construct an index in a very active way. Ultimately, investors need to pick the best route that gets them where they want to go, and that depends on how long the journey is, and how much they want to see along the way.
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