Amid the Coronavirus outbreak, should investors remain invested, sell all their investments, or take it as an opportunity to invest more? What is your opinion on this?
While the spread of Coronavirus is a serious issue, such things do happen every now and then. I am not saying that it will not have an impact, but trying to decode its precise impact on your exact investment is very difficult. I don't know the magnitude of its impact - which we are beginning to see - in economic terms. Having said that, I think the fear of anything and everything is always exaggerated compared to the reality. In economic terms, markets tend to discount a very bleak future very soon and then they turn around.
The spread of Coronavirus may have some impact on us simply because we are so connected to China. While a few businesses like automobiles and pharmaceuticals might not have a connection with China, their vendors might, which could lead to a prolonged crisis in terms of supply chain destruction which could have cascading effects. So as I said, I'm not at all undermining the effects but I think it is very difficult to estimate the magnitude and we can't do anything about it.
Further, I think it's very difficult to precisely benefit from it, so stick to your plan which is in your control and you don't have to guess anything. It's tough to guess when is that exact low point and even if you succeed in getting out, then getting in will be difficult. While it may be a tough thing to do, you don't have a better choice than to ignore such events.