Big Lessons of Investment from War By - Dr. Shrikant Bawsay
1. If you think your money is safe in Banks.
You are wrong.
All banks of Ukraine are closed. People are standing in long ques in front of ATMs and bank branches to withdraw their own saved money but nothing is working.
Infrastructure destroyed, businesses burnt and no scope of recovery from borrowers leading to huge pile of bad debts.
Who will suffer???
Naturally FD investors.
2. Stock markets crashed of both Russia & Ukraine.
Due to sanctions by NATO on Russia
and as Ukraine is actual battlefield.
Russian markets will recover sooner or later as peace prevails and sanctions withdrawn.
But Ukraine may take years to recover.
3. Currencies of both nations failed like anything. Though Russia is superpower Rubel crashed due to Swift detachment from west as well as war expenses.
4. Are Govt securities, Sovereign bonds, Corporate debt carries zero risk?????
Answer is Big NO!
Do you think Ukraine or even Russian govt will be able to payback it's debts very easy?
Off-course No
and it depends on how many days this war goes on and it's extent coupled with coverage.
We carefully write or use word ''NEGLIGIBLE" not zero for G-Sec/bonds.
5. What about your Real estate investment???
People are leaving country. Missiles targeting big buildings and infrastructure. Do you think anyone will be able to buy your land/flat from you?
Obviously No!
If west attacks Russia this will be applicable to Russia also.
No Banks, No Bonds, No Stocks, No Real Estate...
What's safe then???
6. Cash is King
Right from childhood we have seen our grandfather/mother used to keep some liquid cash in locker(तिजोरी) at home. This will help you out as an Emergency fund in such crisis.
7. Gold is Evergreen
From ancient days we Indians used to buy Gold on auspicious days like धनत्रयोदशी, अक्षयतृतीया etc.
No matter whether it's War or anything Gold do not lose its shine. You can liquidate it in crisis any time anywhere in the world.
Moral:-
1. Diversify your investments
2. Take calculated risk so that even if you lose you won't regret like in case of banks
3. Keep emergency funds in cash at safe place which you can liquidate anytime
4. Always have atleast 10% exposure in Gold with blend of electronic as well as physical
Wishes & Regards
Dr. Shrikant Bawsay
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