By April, 2020, the pandemic had hit all quarters of the globe in full force. India had withdrawn into nationwide lockdown which stayed in effect for nearly three months after its announcement in late March 2020. The stock market plummeted as unprecedented economic instability appeared inevitable in the face of Covid19. For keen investors observing the cyclic movement of capital markets, the stock market hitting rock bottom meant only one thing - it was time to shore up.
For investors that rode the first wave of the pandemic to pick up stocks in the falling markets, there were large profits to be made. With no clear visibility on when the pandemic or the restrictions brought on by it would abate, there was a surge of individual investors jumping upon the online trading bandwagon to fortify their savings against economic instability, job loss, or pay loss and a lack of other asset classes to invest in.
Another factor that propelled online investing was the availability of mobile trading apps or stock market apps that allowed small new investors to venture into the capital markets at low costs, with little expertise, and from the comfort of their home. Online brokers have logged record highs in trading activity and new accounts. Stock market apps are the ideal playground for new investors to explore capital market products, buy shares online, and invest small amounts with low overhead costs to open, maintain and operate trading and Demat accounts.
Apart from the stock market, gold emerged as a popular favorite for those looking to invest in safer assets than stocks in 2020. Purchasing gold bullion wasn’t viable on account of health and safety restrictions but bonds and digital alternatives to the metal gained many takers. Industries that boomed with the onset of Covid19 primarily communication platforms, pharmaceuticals, cryptocurrencies, fitness etc. saw their early investors grow with them. Such developments were purely an outcome of Covid19, a spurt no one could have foreseen in the months leading up to the pandemic. Despite the closure of businesses and the stock exchange, early adopters of online trading during the pandemic were able to benefit from the fall and the subsequent rise of stock prices leading the way for individual investors some of whom would open online trading accounts for the very first time in 2020.
The year 2020 has been the year of unpredictable market trends. The new year however has not brought any sure indication of when Covid19 can be expected to end. The resumption of normalcy either in the markets or with respect to the operations of businesses isn’t going to occur in the near term. Trading in 2021 is still going to hold as much potential to earn gains in the stock market to bolster personal finances and savings against continuing economic instability.
As always with investing, especially for younger audiences, building a diverse portfolio of investments and saving strategically is sufficient to make the most of the stock market. Online trading platforms provide relevant insights, data, and the facility to invest as regularly as you like and as much as you like. If you’ve missed the boat in 2020, 2021 is still ripe with opportunities to save, invest and grow with companies you choose to invest in.