What COVID-19 teaches us about the typical business cycle
During the COVID-19 pandemic, we went through two periods of the economic cycle (business cycle) that are the recession stage, which was unforeseen, and now the expansion stage. Some businesses, known as protective enterprises or defensive companies, are immune to the economic cycle. Examples of defensive industries include food producers, suppliers of safety and essential supplies, pharmaceutical companies, essentials and utilities.
As we have seen in the crisis, every householder purchases necessary food and health protection. These vital sectors have rescued the economies of all countries from slipping into the depression stage. Certainly, companies that have been able to have high-efficiency through digital transformation had a role in it, but health and food firms were the target demand.
New manufacturers have also joined the market in attempts to reach the medical needs due to massive demand in sanitisers, masks, gloves, and their complements. Moreover, new factories are opening medical devices, such as laser temperature measurement, heat sense sterilizers, and a variety of new inventions. On the other hand, several companies have chosen to deliver a new area of their business to support society by demonstrating ample supply and taking advantage of this opportunity to increase their income. And that was a brilliant investment in the recession stage. As a result of this financial lesson of the pandemic, we concluded that in the recession stage, it would be prudent to invest in defensive stocks. However, in the recovery stage, it would be advisable to invest in cyclical stocks, which are readily affected by business cycle fluctuations.
From Ms Sara Abdullatif Al benayyan
Saudi Arabia
IPL 2020: MS Dhoni’s criticised for his batting
No doubt our former captain cool, MS Dhoni is back in action after 14 long months of waiting (“IPL 2020 in UAE: Chennai Super Kings vs Rajasthan Royals — as it happened”, Gulf News, September 22). Though his gamble to promote Sam Curran against Mumbai Indians worked wonders, the replay against Rajasthan Royal was faulty. Since Chennai Super Kings was chasing a total of 216, the captain should have led the team from the front and come out to bat in the fourth position. By the time he reached the seventh position, it was too late. Out of the 17 balls faced by him, Dhoni could score only three consecutive sixes at the fag end, which was futile. Rest 14 balls, and he could score only 11 singles and three dots. No doubt, there is a lot of criticism about his batting. But they should know that he is coming back after more than 400 days of sabbatical. Hence, it would take some time before he would return to his own self.
From Mr N Viswanathan
Coimbatore, India
Importance of mental health
It was sad and shocking to read the news about a youngster taking her life for personal reasons (“Woman in Dubai commits suicide by putting face in water pot”, Gulf News, September 22). Why is there a sudden rise in suicide cases? And, the painful part is that many of them are youngsters. I think it is high time that we start considering mental health an important issue. If we keep a positive mindset towards life and tacking challenges, things would be easier. We all face problems that can be related to money, job, family, health, or personal. But, how we manage this will depend on how mentally strong we are.
Stress and anxiety surround all of us at some point in our lives, but with our willpower and optimistic attitude, we can win over anything. Stress can lead to depression. Constant anxiety and depression can sabotage one's confidence and overall health. If someone is facing acute anxiety, depression, and gets suicidal thoughts, it means he or she needs medical help. It's perfectly fine to take help from a counsellor if you are fighting some sort of mental health issue. When you are in dire stress, and you have negative thoughts in mind, speaking to someone about it can help. It can be your parents, sibling, friend, neighbour anyone.
Another bitter fact is that some youngsters are not able to face challenges thrown by life. Due to failures or pressure, they go into depression. Instead of solving their problem with a composed head, they see death as an easy option. I think that it is important to raise awareness about mental health issues and the benefits of positivity.
From Ms Renu Kala
Uttarakhand, India
