The outbreak of Coronavirus has resulted in global stock spiraling down. The COVID-19 is creating apprehensions towards global growth along with an unsettled financial market. This has concerned the investors about the long-term implication of the COVID-19.
The spread of the epidemic in Iran, South Korea, Iran, and Italy is evoking concern about the accelerating outbreak. The financial experts have made predictions of global growth getting a big hit and financial sectors may be taking some big steps to avoid this. People are confused about the uncertainty of the global market. So here we have tried to answer your questions. But before that let us talk a bit about coronavirus:
A large family of viruses that result in illness is called Coronaviruese. The infection causes symptoms ranging from the cold to a more severe one like Respiratory Syndrome. The virus is zoonotic, which means it gets transmitted between humans and animals.
The response to the virus from a financial perspective has been muted. But with the rising cases in China and recent emergence into other parts of the world has shown that the virus can impact severely than what was initially anticipated. Here are some of the changes that have come:
A smart decision when it comes to investment and pensions is that you need to invest and wait as long as you can. People need to avoid temptation due to short-term turmoil. The market right now is hitting the low. People in a position to invest new cash in the market can pick shares that are indiscriminately marked low.
On the other hand, people are usually complacent in the market when it comes to risk investment. The major financial manager advises adding more into the market as market corrections can offer them attractive opportunities later on.
The company provides you with the facility to log into your account online. The company pension is invested in a default fund that is a mixture of bonds and shares. You get the option of switching it to elsewhere. This allows you to increase or decrease the share amount or move the fund into cash.
But not many people track this biggest investment. With the fall of the market due to the virus, it won’t be a smart idea to shift your investment. Rather it makes more sense to contact your company and HR department to know how you can access the pension investments later.
It isn’t recommended to take such a step as in case of theft, your home insurance policies will refund you only £1,000. Here are some reasonable reasons to not take such a step:
The sterling has taken a hit and has dropped but it is still above what it was in the last summer. According to currency dealers, sterling is less likely to fall again.
The euro is vulnerable due to the trade link with the most impacted country, China. While the pound has seen some fluctuation but it will not get impacted that much as per the current situation in the UK.
The economy here is more dependent on the service sector rather than manufacturing, so that is immune to some major fluctuation of the market.
The property market in the UK was booming but there are chances that it may struggle due to the virus. So continuing your house search at this time may make sense.
Most people will think about why property sellers will settle for less when they know that the virus will eventually go? According to search it was found that the decision of buying and selling will not get impacted due to the epidemic.
We hope that the above article has given you a comprehensive idea of how coronavirus will impact investors in the UK and globally. So before investing anywhere, you need to evaluate whether the current condition is a structural phenomenon or something temporary.
There are chances of return on investments going down or up and may get back to the originally invested amount. But one thing is for sure, the trade conducted through ship transportation will see a hit back. With companies avoiding to sail to China, due to the virus, the global market will fall in terms of value and volume.
We urge everyone to keep yourself safe and protected from the virus. Look for the signs mentioned above and contact your doctor immediately if you witness any of these symptoms.