Three Ideas To Keep Coronavirus in Perspective

Perspective

"2020 stinks. I broke both my legs, the world came down with Coronavirus, and Kobe died!" Henry Frank

Coronavirus fears are causing what may feel like unusually stressful times. Perhaps some perspective helps.

A & I Financial Services LLC started just a year and a few months before the stock market crash of October 18, 1987. That day, the US equities market experienced the worst one-day percentage loss it has had before, or since. I remember our founders, Art and Inge, telling me the stress they felt as they wondered why they chose this industry on that fateful day! That crash, perhaps miraculously, never led to a recession.

Years later, on March 10, 2000, the dot.com crash would begin with a thud. I remember hearing stories of stock brokers who were tearing their hair out with panic, as they regretted over-concentrated positions in technology companies. With little credit to anyone, actually, we maintained a diversified portfolio.

Only eight short years later, in 2008, the "Great Panic" set in and we all went through the worst financial crisis of our lives. Today's markets may bring back memories of one or more of these events, but it is completely different. We have an abundance of liquidity in financial markets. Oil prices are low, which is bad for oil producers but good for consumers. The dollar is at or near its long-term average value. And volatility is up--which is expensive for the fearful, should they choose to act, but a potential opportunity for the optimistic investor, like you and me.

We've lived through crises like this before and the world didn't end.

Idea #1: Visit this web site, even briefly

Here is an interesting diversion to help you reach your personal, real-life goals, and not stress out about this market:

Notice that the less you look, the better you do.

Idea #2: Don't take my word for it

Warren Buffett has assuredly amassed a fortune the likes of which very few people in the history or future of the world ever have or will. “We’re a net buyer of stocks over time,” he said on CNBC. “Most people are savers, they should want the market to go down. They should want to buy at a lower price.” (1)

Idea #3: Track the virus but not the stocks

And finally, let's not confuse our health with our wealth. Track the progress of the virus in your home state, in the USA and around the world using these websites. Just call us and we'll walk through what this means for your account, what we've done about it and are doing about it. If we need to adjust anything, because your plans have changed, then we will.

Links for news on Coronavirus for Colorado, USA and the world:

Colo Dept of Public Health
• US Center for Disease Control
• World Health Organization WHO

 

Sources:

(1) Yahoo Finance

Coronavirus and what we’re doing about it
The Coronavirus Correction

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