The Year 2020 where everything is overpriced, Stock markets making highs and people are very optimistic about everything. But, everything got shattered in just a couple of months after the outbreak of Coronavirus.
World Economy got disrupted because of life loss and lockdowns. Infact, the concept of globalisation almost broken because of the current scenario.
Why is it Hard to Make Money?
Because of the virus outbreak governments of many countries ordered for the lockdown. This resulted in the shut down of many companies. If companies shut down, how can employees make money? Stop thinking about making money now, people started losing jobs.
Since most of the world population is middle class and salaried. Now they can’t repay their loans because of job cuts. This affects the countries in another way by increasing the debt burden.
One more reason is that till now, no country invented a drug to kill the virus and no one knows how much time it takes for the whole world to recover out of this. Even if we invent the drug, a lot of damage has already been done to the economy. So it may take a lot of time to get back to business.
So, the above are the reasons that made the year 2020 harder to make money. Now let us see why this year gave us the best opportunity to create wealth.
How can You Create Wealth in 2020?
If You don’t have debt and if you still have your job. Then this is a wonderful opportunity for you.
Nifty fell about 40% from its top after the outbreak of Corona and touched the levels of 7500 and it is hovering between 8000 and 9000 from past few days. So, how to turn this into a wealth creating opportunity? Let us see that
No one knows which stock goes up and which don’t after this crisis ends. So a better way to handle this situation is by investing in EFT like NIFTYBEES. If you want to know how I am investing in NIFTY BEES, read this article – Is this the time? How to and Where to Invest during a Crisis?
This crisis is not permanent. After some time, everyone will be back to business and the stock market starts to grow.
If you observe charts from 1985 to till now, for every 10 years we had a crisis that plunged the markets to around 40 to 55% from its top. But whenever the crisis ends, the stocks rallied creating a lot of money for the investors who invested during the crisis.
In stock markets history always repeats and if you are smart enough, use this situation and turn it into a wealth-creating opportunity and by saying this I am ending this article. Thanks for reading.