These are the major reasons of a cash ou flow at a consumer level and industry at the producer’s level.
Given ad-hoc situation like this when the entire world is at stand still, let’s analyse each segment and try to gauze the hidden opportunities.
A. The primary or the basics
FCS (food/cloth & shelter)
B. The secondary or the must have
C. The tertiary or the should have
RSI (recreation/support services/investment)
Now, question yourself will you?
Part A the FCS
~ stop eating (needless to mention, you won’t hop into Dominos or call Swiggy now)
~ stop a running EMI or rent for the apartment which u are living (needless to mention who owns a mansion)
~ stop wearing clothes but won’t look for the next sale placard
Part B the EMT
~ will the schools come forward and waive your tuition fee (ideally, they should do)
~ stop your regular drug for HTN/cardio/diabetes
(Barring your protein shakes)
~ be saved from state levies in various forms upon you as surcharges
Part C the RSI
~ here’s the actual brunt
~Yes, we are not visiting malls or amphitheatre
Doesn’t matter how Sharukh looks or Katrina smiles (she is busy washing her utensils 😉)
~ yes, we have cancelled all our travel plans as no one inviting us in their cere_monies (no money) or we can afford a vacation as leisure seems painful.
~ the cash or the emergency funds is blinking to the reserve status and we are at the brink of a collapse and looking at old FD’s receipts (banks beware)
~ forget about investment in any asset class, be it real estate, gold (thanks to the spiralling price) or equities (scared now)
Now, flip it at the producres level
~ travel industry
~ social spending will take a major hit
But, a consistent to a muted demand will prevail in consumption, pharma and data driven industries.
The twist is, market discounts the future early than we imagine and overdone everything.
Find stocks in the contraction sector and look for good managment
They will available at dirt cheap prices. Pounce onto it and make a fortune
Quarantine period 2 years or 100 weeks
Good luck !