SHOULD YOU BUY STOCKS DUE TO THE CORONAVIRUS CRASH?

TO GET RIGHT STOCKS TO INVEST WHATSAPP ON 9179333088

Stocks are on sale. That's good news for people who can afford to invest, but not everyone should be buying.Whether you should buy depends upon your personal situation, not the price of shares you might want to buy. Think of it this way. It's Black Friday and a 70-inch television you want has dropped from $700 to $350. That's a 50% discount which makes buying seem like a good idea.

Know your finances

Before you invest in the stock market -- even one as enticing as it is now -- you need to fully understand your own finances. The first thing to consider during the coronavirus pandemic is whether you will keep your job throughout the crisis. Some fields, of course, have thrived during the current situation, while workers in other fields may find themselves furloughed or laid off.Remember that nobody knows where the bottom is for the market. It's also impossible to predict when the market or any individual stock will recover. Historically, markets recover and good companies will come back, but that could take years.

Which stocks should you buy?

A number of very strong companies have seen their share prices fall -- sometimes by a lot. Before buy stocks we should know some points

·         Does this company have the cash reserves/borrowing capacity to make it through the current crisis?

·         Is the company in a business that will recover even if the economy enters a prolonged recession?

·         How has management responded to changed conditions?

·         Has corona virus changed consumer behavior in a way that may become a long-term change?

Basically, you want to gauge a company's fiscal health and look at why its share price has declined. You also want to consider how quickly business will return to normal once the current social distancing efforts stop and life returns to normal. Cruise lines, for example, have taken steps to borrow money and reduce capital expenses to be ready to go back to business once the pandemic passes. That industry, which I believe will eventually recover, will face a long road back.
Some companies will recover faster than others. But if you choose to buy, do so for the long term and because you fundamentally believe in the company's business. There are bargains to be had and gains to be made. But you should be careful: Only buy what you can truly afford, and be prepared to hold shares for a long time.