We are experiencing a global pandemic that has a big effect on the stock market and the economy all over the world. Is it the right decision to invest at times like this? Should I be taking advantage of the cheap stock prices in the market? What is the best strategy should I make? These are just some of the questions we have in our minds.
Despite no one knows how long this pandemic will be, let us all look on the brighter side and hope that everything will soon be okay.
The Philippines stock market made a historic hit last March 19, 2020, Thursday after the Philippines Stock Exchange index (PSEi) closed at 4,623.42 – the lowest index close since January 26, 2012. Some of the valuations say that because of the steep decline, Philippines stocks are close to or already at the 2008 global financial crisis levels.
But since global governments recognize the severity of COVID-19, we are hoping that this will not be worse than the global financial crisis. Being that said, this pandemic is just temporary as global governments are taking action to resolve this problem.
What should I do when the stock market crashes? Remain calm and stick with your plans. Remember that you should always think long-term when it comes to investing. As mentioned, this pandemic is just temporary. Just be patient. Investors who do not panic and stick on their plan will earn long-term.
This situation might be scary, but part of investing 101 is managing risks. Evaluate and rely on reports from your broker so that you’ll know what your next step is. Stay safe, wise, and knowledgeable in times like this.
