Lockdown is bad for the economy and jobs, that is true... the govt could relax it with caveats... like controlling crowed on the markets places, schools except board exams might be closed, not to go out unnecessarily... The government could float corona bonds to feed the poor... interest rates are low... Gov must begin unemployment benefits and healthcare... interest rates are low which would crowd out private borrowing, less... Higher money supply and price expectations may increase investment and spending... lower supply has already showed price pressures and going forward, too, due to higher money demand, too...
Lower prices increase speculative demand of/for money and assets, stocks and inventories, G&S.. Lower prices increase the value of money and others, bonds included, lower yields increase bond prices and demand, stocks, too.. and price EXPECTATIONS... People start hoarding money and assets and G&S.... Lower price increase investment demand and price expectations, lower prices also increase real wages and interest rate expectations, lower prices increase savings and investment, and could also increase real exchange rate exports... Lower prices increase demand and employment given real wages/income/profits increase, too... Lower prices increase demand...
It is just pitiful to club INDIA with countries like Pakistan as far as corona fight in concerned... It is a country with more than billion people, it could deal effectively with coronavirus and has more than enough capacity to deal with any emergency as far as medical facilities are considered... Most likely growth would bounce back, since the deaths have been controlled even in China... Lockdown and isolation would go a long way to curb the spread.... Virus survive no more than 9 hrs in the air, isolation, fasting for a day and proper sanitisation could help… isolation has been more effective in dealing with spread... and found that TB vaccine could reduce the incidence...
Fixed return assets like deposits lose when bondprices and stockprices and inflation up go up, real returns or inflation adjusted returns, investors lose... During Chidambaram back before 2013 RBI floated inflation index bonds... High inflation reduces real rates or returns...
INDIA has been a leader in the fight with corona... 5000 infected and only 149 deaths... It has been more preemptive and proactive than other countries... Higher temperature could help curb the spread... This could be booster for the stocks... Even US has more than 22, 000 cases and more deaths compared to INDIA... Hope INDIA's recovery would be faster than the China and the countries with higher number of the spread... Before this corona war we have had two more wars the trade war and the oil war which kept the markets on their toe... It is self destructive...
Gov could relax lockdown on the off days so that people could restore again with all precaution and sanitisation... Only male members one day and female next day...
Predicting stock price is very difficult... It is only a prophecy... investors should not be worried... Rating agencies gave wrong ratings during the 2008 GFC....
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