Financial lessons from the pandemic: Part 1

The spread of the second wave of COVID-19 has broken all records. Several states have resorted to lockdowns, long-distance travel has been suspended and enforcement agencies have doubled down on maintaining social distancing and masking. On the other hand, economic recovery has come to a grinding halt, with the restrictions being imposed on the free movement of people as well as goods. Amid all, a cloud of uncertainty hovers over the markets and investors. Benjamin Franklin once said, "Out of adversity comes opportunity." So, we need to learn the lessons that every setback teaches us. Here is the first of our two-part article wherein we cover 10 important lessons investors need to learn from this ongoing pandemic. 1. Follow multi-layered masking for safety Towards the end of 2020, WHO advised people to use multi-layered masks or masks with more than one type of fabric for better safety. Similarly, in the field of investment, diversification can ensure that our investments are protected from any external 'infections'. Instead of relying on a narrower investment mandate, we need to make sure t

This article was originally published on June 14, 2021.