Coronavirus was largely ignored by markets during January and first half of February 2020. However, markets witnessed panic selling during the second half of February. And, the fall was quick, all over the world. Indian markets were hovering around their all-time highs and investors were expecting some correction. Corrections are considered healthy for markets but panic selling isn’t good for short term traders. Long term investors usually consider such quick drops in markets as an opportunity to invest in good companies.

However, picking valuable companies at good price isn’t an easy task. Long term investors on online forum Valuepickr discuss individuals stocks in detail. And, they are ready to jump in when the time is ripe for picking up good companies at attractive valuations.

ValuePickr moderator and long term investor Hitesh Patel commented on coronavirus situation. Patel said, “How to approach investing in the current Corona virus situation is something everyone is vexed with and I think nobody has the perfect answer. As investors most of the stuff we do is take educated guesses and stick to basics. While one aspect of investing is about finding winners, the other and probably more important aspect of investing especially during market meltdown is about cutting the losers from the portfolio.”

Patel added, “Market corrections are good times to be dispassionate and remove non performers from the portfolio so that they make space for any new/existing good opportunity. Personally I am surprised at the kind of cuts markets globally are experiencing. But with the kind of rallies that preceded this correction the markets probably were quite heavy and any reason is good enough for them to go down. And Corona came about as a reason to add fuel to fire. We have had viral pandemics in the past too and as usually happens this too shall pass.”

It is only recently that far off geographies like Italy and Iran are reporting outbreak of the viral disease. Thankfully with summer coming through in most geographies, there should be some respite from the problem. China itself seems to be normalising in past couple of days according to reports emanating from there suggest.

Detailed discussion regarding the topic can be read on Valuepickr forum.