Saying you'll be level-headed and calm before something scary arrives is easy.
Coronavirus is in the air. At least for the people breathing the same air as those who are infected by the virus. And by the looks of the major stock market averages, fear is also in the air.
In what may be the most widely anticipated announcement from W.H.O. (World Health Organization), it finally declared the coronavirus a global public health emergency.
Companies all over the world are warning about the virus's impact on business. If earnings are expected to take a hit, then it makes sense that stocks would sell off. If, if, if. Sometimes I hate that word. Regardless of my love-hate relationship with any particular word, "if things get worse" is now "things got worse". This week, Monday started with coronavirus fear tanking stocks. Tuesday, Wednesday, and Thursday were relatively calm. And today stocks sold off with a vengeance. GDP, corporate earnings, and mergers are all on the chopping block. That's what is behind today's selloff.
It's mission critical - right this very moment - that investors don't overreact or under-react. I am advising people against making investment decisions purely on stock market trading. Rather, go by your own personal finances like if you have enough money in the bank for a rainy day. Or if you'll need to sell investments to fund a financial goal that is coming up in less than a year or two. Or if your ratio of stocks, bonds, and cash needs to be adjusted because you're ten years older since the Great Recession ended and if you've been negelctful about rebalancing your portfolio. Because if there is one thing I am confident about, it is that this moment too shall pass. But the valley between now and then could be steep.
It really is more relevant today than a few days ago, so please read it if you haven't already. In it, I pointed out that I believe things get worse before they get better. Still do.
I had a physician on my live podcast, "Be The Boss of Your Money", this week. She is an urgent care physician, Debra Blaine, MD. The highlight reel below is under 10 minutes, taken from our 30 minutes conversation, which included a doctor's viewpoint about coronavirus and what we should be focusing on. At the 5:23 mark, we get into the subject of coronavirus. The show was originally about the state of healthcare in the U.S. but it morphed into including the virus as the news about it spread. You could watch the full show in the POSTS section of my LinkedIn profile.
