The coronavirus outbreak that started in Wuhan, China, has sparked fear and anxiety around the world. Some people think that the panic is exaggerated; however, at Anh Thomas Investment we believe that there are real reasons to be worried. The coronavirus has a mortality rate at least 10 times higher than the seasonal flu and this unique fact makes a whole difference. A country simply cannot accept that 2% of the infected people die without taking drastic measures. These measures have consequences on the economy worldwide and stocks have stumbled. For a long-term investor though, opportunities are appearing everywhere. Investing in Vietnamese stocks now is surely a better bet than it was a month ago. While interestingly enough, it does not mean that it was not already a good investment a month ago. For a long-term investor, short-term volatility should not be a concern. What we trying to say here is that when stocks fall you see your portfolio falling too but there is another side to the story. When markets crash, it creates a myriad of opportunities. Let’s face it, Coronavirus is a terrible thing but it will not become the new norm. Coronavirus will be defeated. When? We do not know for sure, but when we will, the markets will have already bounced back and it will be too late to take the opportunity. In other words, if you are not faint hearted and that you are a long-term investor, now is a perfect time to invest in Vietnamese stocks.
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