This is an incredible time in history. I can’t wait until it is over. Did you, ever, in a million years, think that you’d be quarantined in your own house for weeks?
Let’s review some investing concepts. I’m still getting calls from people who want to “wait this out until things settle down.” It is impossible to time this. And when it comes back, the beginning phases of the recovery often happen quickly.
Check out this quote:
“Investors who flee to cash during bear markets should keep in mind the potential cost of missing the early stages of a market recovery, which historically have provided the largest percentage of returns per time invested.” (The Balance.com)
Also, remember than your dividends will continue to pay uninterrupted. The portfolio is still producing the same amount of cash. I have spoken at length about this in a past article.
“Recessions and bear markets are an unavoidable part of long-term investing. But it’s important for investors to realize that while stock prices can be extremely volatile during such periods, dividends tend to be far less so.” (Intelligent Income)
And let’s take a look at what Warren Buffett has to say about the virus’s effect on the economy.
“You don’t buy or sell your business based on today’s headlines,” legendary investor Warren Buffett said recently in an interview with CNBC. The coronavirus “is scary stuff,” he said, but added, “I don’t think it should affect what you do with stocks.” (Grow.Acorns.Com)
Good News About the Coronavirus
When this is all over, some good will actually come out of it.
We will all appreciate stuff that we took for granted in the past. Dinner with friends, family get-togethers, sports, going to church…
The madness of the world has slowed down. I am finding myself experiencing life in a whole different way. Maybe we will move on from this pandemic different people.
Working from home is going to become more prevalent. I imagine a lot of companies and employees are saying, “Wait a minute, we still get everything done, and we don’t have to pay for office space, and people can spend more time with their families. This is great!”
It has made the world come together against a single foe. Never before has the entire world needed to work hand in hand like this.
Our response to future pandemics should improve. The COVID-19 pandemic has exposed shortcomings in healthcare systems throughout the world. We won’t let this happen again.
A Couple of Exciting Corona Virus Updates
Coronavirus might hate heat and humidity. Scientists have found that the virus is extremely heat sensitive. Now that the state is getting warmer, the transmission of the virus might go down. This is why hot, tropical countries have not had nearly the problems so far.
The FDA has allowed an emergency authorization to allow the use of an anti-malarial drug to fight Covid-19. The drug might dramatically shorten the duration of the sickness and lower mortality rates significantly. Over 37 million doses have been distributed to doctors and hospitals across the country. The results seem promising.
This won’t go on forever. We will get past this as a stronger and closer community and country.
P.S.- Does a friend need an encouraging word? Please share.