There is a huge effect of coronavirus in stock market. It petrified the stock markets. Within five days over 3000 points or 12% dragged down revealed by Dow Jones Industrial Average. It was the biggest 5 day drop during February 24-28 throughout the decline. On 27^th of February DJIA reported the huge one day drop (1191) throughout that week.

In the supply chain throughout the world China plays a major role. This is the reason behind the results of the analysts who got panic with the virus. The companies in China won’t supply their products to the organizations such as Apple and Walmart. Uncertainty was the animosity of stock markets. There are many questions of uncertainty the virus brings such as, When will there be a vaccine? How will countries contain it, and so on?

Impact of coronavirus on stock market may linger

The impact of coronavirus on stock market is unpredictable by anyone. However the record shows stock markets over-react and then continue their rise. The fast proliferation of virus elevates the fear, so people are over reacting. We have to stop and not rush to the end.

Markets bounce backed rapidly from the viral outbreaks. Will the coronavirus' stock market have an effect on lead to a realized capital loss to you? The market change, per se, does nothing. You lose funds only when you sell less than market price. Some company’s results will affect in the short-to-medium term because of scarcity of stocks. Other firms will get benifited. Although we do not know the virus' severity, predicting from past market responses, warning is the major response.

Are you a value investor with targeted firms in your portfolio? Examine your aims and remain the same in the course unless you notice changes in the company’s intrinsic value. Have you been figure out, looking to make a fast buck with a margin account? If so, you will have a difficult situation because banks will call your margin. That's the inherent risk when you use a margin account to speculate.

If you are not a deep thinker but a value investor, now could be the ideal time to figure out value stocks and select those at bargain prices. There will be several. Whoever you are, be alert, reject the herd mentality, and reflect on these matters:

Stay The Course

Review or develop an investment aim and plan before you change your portfolio. Why have you been or do you desire to invest? Your motive will decide your investment method. Best strategy is to buy blue chip equities with a long history of increasing dividends. I hold these shares, review their fundamentals from time to time, and act when there is a constant change.

You will find value stocks nowadays. Market fluctuations offer a great chance to buy stable firms with good track records. Remember, you lose, or gain on sale only, not when markets oscillate. When your investments' intrinsic value change, affirms your strategy, and sells your holdings, even at a loss; don't time the market recovery. The market may be down for few years like the Tokyo Stock Market, which has been below its bubble heights for over two decades.

Don't let generic asset combines influence your asset allotment between stocks, bonds, cash and commodities. You are special, and your mix should suit you at your life stage. Think before moving to so-called safe-haven commodity assets which includes gold that has no intrinsic value.

If you are in the retirement red zone, five to seven years to retirement, your aim must be capital preservation, so avoid the stock market. Don't panic: concentrate on your aim, plan and long-term strategy. Update these and make sure they suit your needs and your risk profile. This, too, will pass, but God alone knows the timing.

Author Name: Michel A. Bell