In this short episode, we’re talking about what’s happening in the stock market in the aftermath of the coronavirus outbreak.
Unfortunately, the coronavirus (COVID-19) is here. My heart goes out to all of the individuals, families, communities and countries that have been affected. Many of us remain on high alert, myself included, because we are the parents or children of immune-compromised individuals who are especially susceptible. The purpose of today’s episode is to help you make sense of what’s happening in the investment markets recently and in the near term future, so that instead of focusing on your money, you can keep your focus on remaining healthy.
It’s definitely true that companies that depend on global travel and complex international supply chains could be in serious trouble. But how will this outbreak affect you and your money?
If you’re invested in the stock market with a diversified basket of investments designed to serve your needs and meet your timelines, your accounts are probably down. As you watch values drop, it’s easy to get scared and think to yourself, “Wow, I need to sell before this gets worse.” That’s a normal feeling, and I experience it too!
However, trying to time the market is what the best investors in history have called the loser’s game - and I explain why in today’s episode.
It’s important to note that temporary declines are not rare. Since 1927, there have been 158 2-day periods where the market has declined 4% or more, 49 2-day periods with a decline of 6% or more, 15 2-day periods with a decline of 8% or more, and 5 2-day periods with a decline of 10% or more. Further, the S&P 500 is higher now than it was after downturns following past outbreaks like SARS, Avian Flu, and Zika. So, have no fear, this too shall pass!
Beware media magnification! If you rely on the national financial news media for financial advice, they’ll have your emotions whipsawing. I design Profit Boss® Radio to be your voice of rationality and even-handed, evidence-based wisdom.
If you want to better understand what’s going on in the markets and make better sense of the story the media is trying to spin right now, you don’t want to miss this episode. Tune in to Profit Boss® Radio today!
Here’s what you’ll find out in this week’s episode of Profit Boss® Radio:
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