Tweet Buster: How will a virus vaccine reset markets?

While easy liquidity, cheaper oil prices and better-than-expected quarterly earnings are giving equity bulls all the reasons to march on, fast-spreading Covid cases are seeking to create a barrier on their path.

A vaccine seems the only hope. But when will it come? Your guess is as good as anybody’s. But a vaccine can definitely change the game, if and when it comes.

Value investor and iThought co-founder Shyam Sekhar says the invention of a vaccine will be “a fascinating reset of a preset.” “It will rewrite investment assumptions across asset classes, sectors, companies and valuations,” says he.

While a vaccine might alter the investing world for many, it’s true that the Covid-induced market crash has left investors with a lot of lessons.

Here are some of them:

PMS fund manager Basant Maheshwari says during the market crash, saving capital is more important than recovering loss. He says it is like stopping a wound before nursing it.


He also has a word of caution for the ‘get-rich-quick’ investors, who have come in hoards to Street after the market crash. “Everyone wants to get rich in a hurry, not realising that in the market, the penalty for over-speeding is ‘mostly’ death,” he says.


Value investor Abhishek Basumallick has it all listed out:


Independent market expert Sandip Sabharwal advises investors to avoid duration funds, as a spike in inflation has brought the rate-cutting cycle to an end.


In a complete shift from tradition, Warren Buffett took the market by surprise when data showed that the legendary investor has dumped bank stocks and picked gold. This did not go down well with investors, as Buffett has always criticised gold as an investment bet on many occasions.

Helios Capital’s founder Samir Arora even questioned the credibility of Berkshire Hathaway, the company Buffett heads.


Market veteran Shankar Sharma says Buffett's investing choices over the past many years have been unpardonable. Do you agree?



Lastly, if the Tata Group-Air Indian deal goes through, it could be one of the biggest reforms for India in many years, believes Arora.