{"id":2128,"date":"2020-03-13T15:19:00","date_gmt":"2020-03-13T15:19:00","guid":{"rendered":""},"modified":"2025-11-07T12:52:53","modified_gmt":"2025-11-07T07:22:53","slug":"the-biggest-falls-are-here-but-should-we-ignore-all-this","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/the-biggest-falls-are-here-but-should-we-ignore-all-this\/","title":{"rendered":"The Biggest Falls Are Here, But Should We Ignore All This?"},"content":{"rendered":"
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Amidst the coronavirus outbreak and the fear of the virus leading to a pandemic, many investors like you are jittery about their stock market<\/a> investments<\/a>. And recently, I spoke to one such stock market investor, who was worried about all the news floating on the news channels. I really think the excerpts of the conversation will help you make a sound financial decision.<\/p>\n\n\n\n

I am worried about the risk of coronavirus on my portfolio. I never thought at the start of 2020, that something like this would really happen.<\/strong><\/p>\n\n\n\n

The virus is a black swan event, an uncertain event that is beyond imagination, number crunching or valuation. So irrespective of how sound your research or financial models are, black swan events will make your calculations go for a toss. We can\\’t predict their occurrence and their effects. So to answer your question, a virus is not a risk, but an uncertain event that can never be measured. Read about the perils of fear in investing here<\/a>.<\/p>\n\n\n\n

But if you look at the history, markets have recovered from such outbreaks, such as Ebola, Influenza, SARS, MERS, Swine Flu, Zika.<\/p>\n\n\n\n

As per a research by Goldman Sachs, the global stock<\/a> markets have dropped at the start of the outbreak, but tend to rebound by almost 6-15% on an average six months, and 11-30% on an average 1-year after the outbreak came in light. Not that I am trying to say that it will be a case this time as well, but India has two advantages:<\/p>\n\n\n\n