Tough times for global economies

corona pandemic

Tough times for global economies

As the Market Cap erodes the listed companies will be under severe financial pressure. Further with lock down scenario & lack of work, the purchase power of the common man will drop sharply. Under this scenario, everyone will focus on holding back the funds and will spend only on essential items.

Companies that have huge inventories of non-essential items will get into liquidity crunch, as sales will drop drastically. Over and above that due to market cap erosion, companies cannot even take loans from banks to manage liquidity.

Companies dealing in non-essential items will have no choice, but to sell at heavy discounts to keep afloat.

Different countries will follow different approach to keep the economy running.

But locked up at homes with smart phone will definitely change the habits of people.

Everything will be bought and sold online. All the exploration, both for professional and personal reasons will happen online.

Now it is more critical for business to have online visibility.

If you are not online, you are probably out of business.

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