How to Boost Financial Immunity During and After Covid 19 with Wise Investments..( Safeguarding Financial Health from Covid 19 Repercussions)

 

How to Boost Financial Immunity During and After Covid 19 with Wise Investments

 

Hello Readers …after a long time... Welcome again to my blog... 

 

 

It has been almost more than 5 months and still the Covid 19 saga is not getting eradicated fully. Lot of uncertainties in every field are irritating more and more to all of us. Though maximum safety and precautions are still inevitable and may come under “Necessity” heading; life has started rejuvenating itself again. which is the most important phenomenon now days to rebuilt the depressed economy. Financial industry is also not an exception to it.  

 

There is risk of attaining ‘Keynes’ Liquidity Trap’ like situation which generally causes economic stagnation as well financial depression leading finally to Stagflation.  

Here is in detail explanation of ‘Keynes’ Liquidity Trap Theory’ .

 

 

It’s the situation where the interest rates tremendously fall because of lack of cash injected by central bank in private banking systems. In the situation people prefers to hold the cash with themselves and also spending it instead of investing it. Which negatively affect the market.  

 

 

 

 

 

 

 

 

 

 

Now, its immensely necessary to boost “Financial Immunity” with wise investment picks. While most of the industries are facing repercussions of Covid 19, some industries are in boom and also expected to be in boom for short to medium term time space. Yes, we can say this situation as ‘Blessings in Disguise’ but its true.  

 

 

Best example of this is OTC medicines market. The demand for OTC medicines market products is constantly growing due to Covid 19 impact as sanitization and cleaning has became life’s fundamental needs now. The products such as sanitizers, alcohol-based sanitizers, soaps, detergents, floor cleaners and other similar products have become unavoidable and tends to keep their position strong hereafter. So, the industries manufacturing directly these types of products and the industries who are supplying intermediary products such as raw material, chemicals will also be in good position from economic perspective.  

 

 

Along with the OTC, pharma industry is also getting major upward shift as common drugs such as cold and cough medicines, immunity boosting drugs are doing record break sales these days.   

 

The FMCG industry is also catching investors’ eye because of its necessity element. Food products such as biscuits, noodles, instant products have saved many lives during this pandemic and so have become “Must Store” food items. 

 

Due to Pandemic situations, now people are also preferring online options. Shopping sites such as Amazon, Flipkart etc, online grocery platforms comprising Big basket, Dunzo as well as online medicine websites such as Netmeds are also getting high preferences. For other household and clothing also brands like Ajio are capturing market with aggressive expansions.

 

 These online platforms are getting popularity due to its easy accessibility and promptness and mainly “Doorstep delivery Aspect” which is important for old age people or for the people who are staying alone or away from family. Additionally, here we can select products with tremendous choices which can also boost the agenda “Vocal for Local” if we choose wisely with easy access to sellers also.  

 

Now from investment point of view, investment in companies which are operating in above mentioned and / or similar and related industries can boost our Financial Immunity for not only short term but also for medium as well as long term investment phase.  

 

In addition, wise investment options; for example, ESG Funds can also be a good choice in current scenario. ESG funds are the portfolios comprising bonds and /or equities in which Environmental, Social and Governance factors have been integrated into the investment process. In this, the equities and bonds have tested on the very stringent sustainability and government parameters of ESG factors.  

 

 

Beyond this, the insurance industry is also getting high demand as people are becoming more cautious and alert about their and family’s health and facilities such as Mediclaims are providing hassle-free services which are also acting as psychological support the affected family.  

 

The second aspect is as mostly people are working from home, the possibility and feasibility of working from home option is becoming interestingly acceptable which also saves huge operating expenses such as electricity, rent and many more. From employee’s point of view, commutation expenses and time have been saved now days which also offering balanced work and family life as an additional benefit. Pertaining to this changed atmosphere, ergonomics-based furniture companies are also expected to gain good demand in near future.

 

Moreover, the companies providing connectivity facilities to ‘Work from Home’ or Remote working scenario, for instance, data packs, cable connections, calls facilities and many more; are also expected to gain high demand in near terms.

 

 In addition, demand for some products such as Masks are also giving high rise to the stocks of some textile companies. This can also uplift a small scale industry phenomenon. 

 

 

Few examples of currently appropriate stocks are Reliance, ITC, Nestle, Centaur Pharma, Divi’s Laboratories, Cipala, Goderej, Hathway cable, Den Networks, Tata and many more. 

 

So, friends, take care be safe and accept appropriate ‘New Normal aspects ‘of Investments too…Stay tuned with ABCD of Investment by Madhura P Karekar.