Numerous crisis of the U.S. stock market over the past 30 years originated either in the economy or in the geopolitics. The recent crash in March is unprecedented in the sense that it's the first financial crisis caused by a pandemic. However, Professor Huang Jianbing from Fudan University School of Management suggests that the crisis is deeply rooted in the economic recession in recent years, the oil price war between Saudi Arabia and Russia, as well as other intertwined economic, political and social factors.
In face of the drastic fluctuations in recent weeks, Professor Huang advises the Chinese investors to:
1. Stay calm and prudent. As history has shown, market often over-reacts to news and stocks tend to sharply rebound after a collapse.
2. Avoid high-risk investments and maintain the diversification of the portfolio.
3. Always conserve cash and be prepared for further uncertainties.
