Covid-19 Shakeup
Greetings from PenguWIN, The continuous fall in the equity markets has spooked almost every investor. While 2008 was a major crash in value terms, the Corona Virus impact has caused one of the fastest crashes that the stock markets have witnessed – i.e. about 33% down in less than 2 months (Sensex reached 42,273 on 20th Jan 2020) and 31.3% down from 20th Feb which is less than a month. The question that everyone has...
Markets on Fire Sale
Greetings from PenguWIN A fire sale is a sale of assets at heavily discounted prices. Here, I am referring to the sale of stocks in the market as though all businesses are closing down. Initial reports from the World Health Organization said that the death rate is between 3 to 4%, the rate being higher for 60+. Older people and those with respiratory problems, heart disease or diabetes are at greater risk. There are other sources from...
Budget 2020
POV 1 – Propensity to Spend Experts were of the opinion that the demand slowdown can be countered by putting more money in the hands of the consumers, so that they can spend. The expectation was that the budget will cut taxes. The budget team came up with the innovative solution of cutting the taxes for consumers, if the deductions can be foregone. The savings rate that was already on a downward spiral, as the...