Covid-19 Pandemic may have caused The Crash in Stock Market
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| Stock Market Malaysia March 27, 2020 |
Above picture describes Stock Market falls to its lowest akin to 2008 Stock market Crash. Same year Coronavirus Lockdown happened nationwide. The bear market lasted few month only.
Not the right guy to say Bursa Malaysia slowed down due to Covid-19 Pandemic simply because I am not a savvy and rich investor. Nobody could have predicted the Covid-19 Pandemic. As if nobody predicted the pandemic then surely no one predicted the crash in stock market. Besides, it make sense to say it slow down the economy and put everyone out of job. That day, it felt like the end of the world.
The author may have stumbled upon the rare opportunity to witness the "Dip" in the Stock Market. As someone that do not have any prior knowledge about stock market investment, this seem to be a window of opportunity to learn about the stock market right now. Author have been very passionate about the stock market and it could take us 10 years to have enough courage for the first step in this investment journey.
Stock Market Platform always put up this warning "90 percents of the Retail Investors might lose all their savings in the stock market". The warning send off many retail investors. This is the only truth in the stock market. You could still lose money in the bear market without proper guidance.
The risk of investing in Malaysia stock market may have been greatly reduced due to the crash. To actually "Buy the Dip" the stock market has to be in bear market. Imagine once in your lifetime You could actually experience buying the undervalued stock. Would you still be hesitant ?
But the risks are still there what if the stock market never recover to its former glory ? Stock market is never a get-rich-quick scheme. It is a secondary market may or may not reflect the company. Even a good company in PN17 or delisted on the Bursa Saham, the company can still survive. Yet, your capital investment may not survive.
Throughout the years author have learnt the stock market in Malaysia are not for the fainthearted. The perfect example were the glove and medical counters that used to be rising in the Bursa during that time is not performing well now after the end of pandemic.
The incredible stock rally on the glove stock counters were phenomenon to see. Also during this period of time there are many self proclaimed investment gurus came out and trying to get you to buy certain stock counters. If it really good, why it need recommendation. Most gullible people will fall to this as these gurus honeypot you to their scheme.
The hard lesson are most of the stock counters listed in the Bursa are meant for institutional investors with deep pocket. The one for the retail investors are just few and you could only get the sweet deal from the "dip". But the "dip" is like once in a blue moon.
Some of the the blue chip counters in Bursa Malaysia were so resilient that even during Pandemic the stock entry price never drop too much. It is very sad case for retail investors.
The moral of the story is retail investor will lose money. Do not invest too much money and only invest the money you afford to lose it. Malaysia stock market is an eye-opening experience and meaningful knowledge !!
The biggest stock market crash was not in Malaysia. Perhaps, the biggest stock market crash happened in China stock market. Its real estate companies listed in China stock market never recover from bear market. One of the giant real estate company in China had gone delisted and some of them went penny stocks.