Question
During the outbreak of COVID-19 Pandemic in U.S., the capital market and the overall economy were tremendously affected in many ways. Below is a graph
During the outbreak of COVID-19 Pandemic in U.S., the capital market and the overall economy were tremendously affected in many ways. Below is a graph that captures the overall stock market performance (S&P500) during the period of Fed 15-Mar 20 2020, with a significant drop of 30%. As a rational individual, which one of the following financial actions do you consider to be the most legitimate in response to the COVID-19's disruption?
Group of answer choices
Following the crowd, go to the supermarket and store enough toilet papers to mitigate the potential risk of it's inflating price
Stay calm. Diversify your investment . Manage your money by evaluating (and adjusting) your spending plan, cutting back on expenses, working with lenders and creditors to explore your options,
Hold as much cash as possible.
Trade on the daily basis in the hope to make significant amount of money.
Sell all your stocks, because you firmly believe the market and economy will crash and would be less likely to come back.
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