Will stock markets drop more?

All those with money in the stock markets — be a little wary — this is not the end of the wave of correction we are seeing.

With Russia and Saudi fighting on crude prices — the so called geo political risks have gone up — coz crude at 30 USD while seems great for consumers — will also be unsustainable for a lot of crude producers and the entire ecosystem that depends on crude to survive (think refining companies — drilling companies — companies that make equipment etc). It’s like what happens when farmers have to sell crops below their cost price — the ripple effect is felt across companies making biscuits etc as demand goes down.

Now with Corona also freezing global output — where will growth come from?

And without growth — where will extra demand come from? So stock market starts collapsing — and that could lead to recession in US — so a vicious cycle sets in!

Over the next week or so we shall see how things pan out. But still the world markets are very unstable right now. So best not to have expectations- keep fear and greed away — things over the next 3–4 months will settle down. Demand will come back a markets will be back!

Life will go on!