This coronavirus pandemic is a different situation. This virus affects not only people’s health and lives, but it also causes problems across the planet and in all sectors in addition to health as the economic, production, logistics and financial sectors.
We believe that 2 waves will affect the planet in the near future.
The first wave will be the one we are seeing now, the virus wave, the pandemic getting sick and killing people around the world and we believe it will be a shorter wave than the second.
The second wave will be the wave of the great recession or economic and financial depression. The world’s trade and industry have stopped.
We can say that 2020 was the year the world stopped. Companies and stores are closed, they do not sell anything, they are not generating cash or any kind of wealth. We believe that many employees will lose their jobs. The number of unemployed should rise much in the world as well as the rates of poverty, violence and the famine.
The world economy is made up of small businesses, millions of small businesses around the world and many of these small businesses will go bankrupt. We hope that our opinion on this great depression after the coronavirus pandemic is wrong. We would like to see the world as before with the economy. growing generating jobs and wealth.
We hope that this pandemic will end and that we will be able to suspend this social isolation soon. People need to go back to work and generate wealth to generate cash and wages. Our lives need to return to normal soon because the longer this social isolation lasts, the greater the economic and financial depression that we will face in the near future.
How to survive in times of depression?
You don’t have to leave the stock exchange. You need to know where to invest your money. Which companies are most likely to survive a major financial and economic depression.
You should choose those companies that produce a lot of cash with low cost and little debt and with a guaranteed market. If you invest in these companies you will be making a low risk investment (companies that produce a lot of cash with a guaranteed market will not bankrupt) and high profitability (because you bought cheap or below the stock value)
In these moments of great volatility in the stock market, we found an excellent opportunity to buy excellent companies for a very low price.
Your return will be good in capital gain, dividend yield, roe as you use the value invesmentt strategy.
Do you know how to invest using the value investment strategy?
First of all, when you apply the value investment strategy you will stop being a speculator and become an investor.
An investor is that person who invests in the stock exchange not for a few days or weeks but invested to build a solid, strong asset for him and his family forever.
You will see that you have overcome many crises, wars, pandemics and your assets on the stock exchange have not been destroyed. You remain in the game while speculators have been destroyed and put out of the game only because the market has fallen once or twice.
Don’t be a loser ….. stay in the game as an investor.
We will tell you how we use our value investing strategy. Read in the next post: Value Investment Strategy: How We do It.
See you in the next post: Value Investment Strategy: How We Do It.