Warren Buffett’s advice that it’s wise to embrace risk when the market’s depressed and investors are running for the hills by buying stock if you can is resonating with analysts.
According to Momentum economics adviser Sanisha Packirisamy, there is potential long-term advantage in piling into stocks while oil futures are taking a coronavirus (Covid-19) beating and share prices are falling.
Quoted in a South African agricultural portal, she said overreaction to the Covid-19 outbreak in China had caused a fair amount of investments selling, begging the question whether now’s not the time to buy stock while prices plunge.
According to Packirisamy, rising uncertainty always leads to overreaction.
She also warned that alarmist views disseminated via social media could easily make matters worse.
However, once Covid-19 has run its course and markets start recovering, supply chain services across the globe are expected to bounce back through improved profits and share prices.
Chief executive at Galileo Capital, Theo Vorster, agreed with Packirisamy’s views, advising that stock prices were well primed for opportune investment.
And although one might say that it’s expected of investment sector representatives to punt buying while shares are low, signs are that markets are eager to recover from Covid-19 and that delayed buying could lead to missed opportunities.
