I’m ashamed at how long it’s been since I’ve updated my blog. I promise I haven’t just been screwing around. I’ve had some awesome work opportunities through U.S. News & World, Benzinga and InvestorPlace. I also recently bought a house, so I’ve really been using the weekends to fully recharge.
Anyways, I just wanted to make a blog post to talk about what’s going on with the market and how I’m personally handling it. I believe this coronavirus is much more of an economic threat than a health threat. Unfortunately, a lot of people have and will die from the virus. Depending on which estimates you trust, the coronavirus seems to be at least six times more deadly than the typical flu. While my heart goes out to anyone who loses a loved one from this virus, it still has a relatively low mortality rate and it is most dangerous to people over the age of 80.
From an investing standpoint, I wouldn’t be surprised to see the coronavirus trigger more downside in the market. Consumers and businesses are hunkering down to try to avoid the worst of the outbreak. That means less spending, less travel, more work and production stoppages and fewer major events.
The million dollar question is whether or not there will be a major panic in the U.S. But no matter how bad things get, the coronavirus is temporary and does not pose a systemic risk to the markets. The economy will ultimately recover.
That’s why when people ask me if I’m selling stocks, I tell them no. Instead, I have shifted a bunch of cash to my trading account. I haven’t bought anything yet because I still think stocks are relatively expensive at these levels. But I’m prepared to strike if the opportunity arises. If there’s one lesson I learned back in 2008, it’s that market crashes can happen much quicker than you expect.
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