markets are reacting in panic with very little amt of information on the impact of new variant of corona. I have some questions.
are markets factoring in the future impact of virus?
if yes, can we roughly estimate what can be the overall impact on both economy n mrkt?
If no, are markets over reacting to the news?
pls share ur views n insights
I personally think most of the times, markets fall under their own weight.
Market was rising all these months factoring in the earnings upcycle of our companies and uptick in indian and global economy.
So, any news which negatively impacts this broad based trend that the market is expecting will react in negative movement in mrkts.
So my answers to your questions would be 1) yes,I think markets are factoring in the impact.
2) Data is currently not available for the same.
3) Possible but only time will time that what is certain is the market trend was already weak before this news so it can also be trend continuation.
Such knee jerk reactions are often experienced in the markets. The fall of around 10% does come almost every year and it might seem that the market just needs a reason to fall. Anyways, I am focused on my watchlist and buying some quality scrips and mutual funds at lower price.
Why spend the time and effort in trying to understand something that is already outsourced by you to the big players. They have done their assessment and taken a decision answering whatever questions you have. One issue though, they have not communicated this to you in words but really they already have. The only piece of communication you have from them is where they are putting their money. Once you decipher that, you will have your answers. Not the answers you are looking for but the only answers that matter.
