Impact Of The Pandemic On Investors & Businesses
By Intern Name : Ria Shrikant Sawant
As a part of the “Do More With Your Time” – A KredX Internship Initiative, our interns, (age 3-17) worked on a series of blogs and articles. Here’s a blog by our 12-year-old intern, Ria Sawant about the impact of the pandemic on investors & businesses.
The pandemic coronavirus has spread worldwide, affecting humankind in multiple ways. A vaccine of this dangerous illness has still not been found by scientists.
To prevent COVID-19, we have to maintain cleanliness and hygiene, which plays an extremely important role in such a crisis. Sanitising also plays a very crucial role as the alcohol present in it kills the protein layer of the virus hence destroying it. Another way is Social Distancing – hence all countries around the world are employing a strict lockdown to stop people coming in contact or gathering in groups to control spread.
Investors have been hard hit by the impact of COVID-19, including companies, businesses, etc. The stocks are decreasing day by day, putting them in a great loss. This will lead to a huge layoff, deduction in the salaries, increments and promotions held up. Due to the lockdown, the retail industry is greatly affected because of the supply chain crisis.
The oil and gas companies have been facing great downfall as fuel is not being sold or used. As travelling or going to any country is restricted, the travelling agencies are also experiencing a great deal of difficulty. The automobile companies and the cotton industry have also been disrupted because of less demand and an insufficient amount of raw material.
The global economy and financial markets are facing the biggest threat due to coronavirus. But to be on the positive side, there are ways where the current situation can be stabilised. Investors are most likely to go for a defensive play which may include investing in companies in technology, consumer goods (packaged essentials, personal and healthcare, food processing and retail).
Taxes on some products can or may be increased. Essentials have a V-shaped recovery as the loss factor as well as the profit factor remains the same. Whereas in the case of luxury there is a U-shaped recovery meaning both ends are not same so it may take time to recover from a loss and then rise.
Shops are increasing the prices of their products and also lowering the discounts they used to give earlier until the end of the issue in some places. In the Pharmacy sector, there has been an increase in demand but a decrease in products as well as the raw material which are imported from China (as they are cheap). Prices are increasing, especially on medicines, sanitiser, and masks. But in my opinion, if we try to make a substitute for the required material, then it might be easy to manufacture pharmaceuticals.
