Covid 19 was an uninvited, unwelcome, unwanted guest. Covid 19 came and disrupted everything and everyone until we – do – not – know when.
One good belief is – covid 19 shall end soon or soon we shall have ways to manage it.
With all its ugliness it was, to me, a shake up back to humanity. It brought about an environment in which each and every person( natural or legal) had to look deeply inwards and re-assess values, preparedness, strategies and adaptability. Hopefully, we all used (and still using) this time well.
I here now wish to discus three issues on life after covid 19 in the financial world in a very ordinary approach and wording.
1. We shall for the next coming months experience a buyers market. At the moment, sellers are still willing to sell but the buyer is still holding on to the little cash available. 95% of business and individuals are not generating income or earnings and the only little savings possible can only be reduced expenses. As the situation continues to stabilize, there shall be so many sellers and just a few willing and able buyers. This creates a buyers market, a situation in which the buyer to an extent dictates the price. It shall be the best time to buy. My advice on this therefore is, try to make some savings little as it may be as it will translate to a huge gain after we stabilize. This shall apply to shares and securities as well.
2. Economic recovery: This shall most likely be *U* shaped recovery – where business went down rapidly, stay low for sometime and later recover steadily. This is basically for three reasons:
~ After any form of scarcity, there are always numerous discoveries and re- alignment that compensate for what has been lost and usually exceeds what was there before. Productivity goes up.
~ Emotional and financial intelligence amongst individuals has changed a whole lot.
Individuals are now thinking of possible diversifications. Focus shall now be more on investment. The multiplier effect of re- focusing on investment shall be phenomenal.
~ Corporates shall substantially restructure budgets focusing more on emergency funding and risk management tactics. For a growth oriented business, this shall lead to great business growth and profitability. Employment level shall go up.
Nb: Life and health insurance shall be the greatest beneficiaries. The Covid 19 real- life- scare has made us to think primarily about life and health more than ever before.
3. Finally, we shall have heavy investment on internet – online : The online presence has grown even more during the covid 19 ‘ break’. A new world with highly aware individual is coming up. As a cost reduction strategy, most businesses shall now go online. Businesses as well as individuals must rethink and invent ways and means to tap opportunities created by the Internet. Small and medium businesses may now go international.
It is absolutely important to engage a business advisor to benefit more.
Whereas we all seem hard hit, the future is bright. Just position yourself right.
Ofcourse, in any calamity there are always causalities. Covid 19 is no exception. Some businesses will, if not well structured, be history.
* Assumption: There shall be no a second wave of Covid19 or re- infections by the same.
Business Coach –
Profitability and growth advisor.