Events should now be declared as the new NORMAL in the stock market world. and this time came with the Russian Ukrainian war. This war ofﬁcially declared by president Mr Putin today has created havoc in the global stock market numbers and of course, it injured the Indian bourses badly.
Nifty collapsed to 4.78% in a single day and broke 200 DMA showing technical weakness to an extent. Even today is the worst day for Sensex as well with the Sensex losing almost rs 13.6 lac cr in a single day.
Even the Russian index got numb as it plummeted 45% in a single day’s highest ever registered fall.
Panic spread in every direction in all parts of the world. All entities are concerned about the ﬁnancial and life loss that this decision of the Russian government will make to many. Wars are never good for the economy and in the world where all nations are connected in all respects be in culture, be in trade and economy. consequences are directly impacting and so can be felt today.
But as we said, we as a whole world have surpassed the millennium crises ( COVID 19) so smoothly that, it is evident that this crisis can only impact in the short term, but not in a longer duration. However, it is to be noted that, from the decades, geopolitical tensions and crises have never made a long term impact on the economy. the impact lasted only for a few months or days .and over the period investors and the economy are matured in such a way that undue impact is always gets mitigated.
For the shorter term, of course, it will delay the speedy recovery we expected in this post covid era. Inﬂation will continue to deter us for a few more weeks, and the oil supply may get shrinked a bit. with the declaration of the war, crude oil crossed over 100$ a barrel in almost ﬁrst time in the last 7 years.
Panic or Opportunity?
Remaining patient and strategic is the most suggestible approach for the investor segment right now. Geopolitical crises can never predict the levels of loss, so such scenarios take the beneﬁt of every bump. i.e, strategically putting at levels in either lump-sum mode or sip mode is the most stable and appropriate way to get beneﬁtted.
Another approach is to be more strategic in terms of reviewing asset allocation and can be restructured and are monitored and can be placed in the aptest way so that it can create a better compounding with a measure for the defence of it as well.
Even young and little liability investors can have a more aggressive and focused approach. For more such updates stay tuned to Omega Financial Blog.