Wash your hands. Ignore the markets. Don’t touch your face. And don’t touch your stocks.
That is hard advice to follow. With the coronavirus epidemic intensifying, the markets have entered a period of extraordinary volatility. Don’t act on the information that follows: Over the weekend, the price of oil cratered 25 percent. Stock-market futures plunged so dramatically that the exchanges shut down, as did equity exchanges this morning. The entire United States Treasury yield curve fell below 1 percent for the first time ever; in layman’s terms, that means investors were paying for the privilege of lending money to the American government, due to overwhelming demand for safe assets. A fear gauge of the bond market hit its highest level since the 2008 financial crisis, maybe its highest level ever. Panic, chaos, terror, and uncertainty reigned.
Read: What you can do right now about the coronavirus
It feels like 2008 out there. And of course it does. COVID-19, the disease caused by the coronavirus, is killing thousands of people and infecting what might end up being millions. Businesses are shuttering and failing; quarantines and travel bans are coming into place; companies are slashing earnings estimates and economists are slashing growth forecasts; millions of workers are seeing their wages evaporate; and governments are bungling their economic and public-health responses to the illness. It is bad out there. The markets reflect that.
calvintaneng
YOU ARE WRONG
THE BOOK SAYS
"BE THOU DILIGENT TO KNOW THE STATE OF THY FLOCKS AND LOOK WELL TO THY HERDS"
There are stocks that will be badly hit in a great depression
And there are stocks that will survive
SO YOU MUST CHECK CAREFULLY WHAT TO LET GO AND WHAT TO HOLD
DURING GREAT DEPRESSION THESE FAILED
1) MEN'S CLOTHING STORES
So be careful of padini
2) CONSUMER DURABLES COLLAPSED
So cannot buy Petchem
3) Property sales dropped.
Cannot even pay rent. So eviction
So avoid Real Estate stocks
4) Almost 10,000 Banks in USA closed.
If you want to put money in Bank.
Don't put more than Rm250K each as more than that not covered by Insurance
What will do well?
GOVT STIMULATION JOBS LIKE NFCP
WHEN PRIVATE SECTOR FAILED TO PROVIDE JOBS GOVT MUST STEP IN WITH PUBLIC INFRAR JOBS
BASIC FOOD
BASIC TRANSPORT LIKE TAKING BUSES OR TRAINS
HEALTHCARE
SECURITY AS BAD TIME PEOPLE LOOK FOR SAFETY
BETTER DO SOMETHING
2020-03-21 14:00