Ugh!
What a time to be an investor, huh?
In my time as an investor – I can’t remember a time when the markets were as much of a roller coaster as they’ve been over this entire coronavirus pandemic.
It’s down 2,000 points one day…
It’s up 1,900 the next.
And the world is freaking out over it.
That said: should we be?
Without a doubt, the markets are not reacting well to the way that the coronavirus is affecting the every day lives of people around the world.
We’ve got every single sport postponing or even ending their season in order to cut down on exposure…
We’ve got schools shutting down around the country…
We’ve got the President of the United States shutting down travel from around the world in order to minimize risk of outbreak…
It just seems like life has changed drastically in the span of a week and the way the markets are reacting to the “new” way of doing things has people forgetting the universal law of change and growth.
It ain’t easy.
Everything that the government and businesses are doing right now to combat the coronavirus is necessary.
At least it is in order to keep the nation as healthy as possible…
And whenever you have so much change happening so quickly – things are going to go a little crazy.
All it takes is for a few people to panic and it sends ripples across the investment world – ripples that turned into waves – which then morphed into a tsunami that leveled the markets.
It dropped so hard – so fast…
That nobody knew the best course of action to take! How do you react to a market that is sinking like a cement filled shoe?
The massive selloff was frightening…
I’m not going to lie – when the losses hit 1,000 – I got a little worried…
When they hit 2,000 – I may or may not have thought about what liquor was readily available in my house in order for me to take a shot… or six.
Watching it drop was like watching your kid strike out at baseball with the game on the line…
And after the blood bath was through – it didn’t get any better – as at one point, futures had the Dow down another 2,600 points.
Luckily…
We got a reprieve.
The next day – the markets recovered almost 100% of their losses from the day before…
And the entire population of Wall Street let out a sigh of relief – including the ape that’s talking to you right now.
That said…
I didn’t need the recovery to chill out. No, I had actually chilled out right after the markets closed the day after the biggest drop in history.
Why?
I can tell you that it had absolutely nothing to do with prescription drugs, recreational drugs or alcohol…
It came down to one simple and solitary fact. A fact that once I realized – I calmed down and slept like a baby.
What’s happening now – this extreme volatility…
Has NOTHING to do with the economy.
There hasn’t been any new regulation or new policy or new ANYTHING to do with the market that would indicate what’s been happening over the past week.
Consumer confidence is still high…
Job reports are still good (though, they may take a hit after this)…
And wages are still climbing.
For all intents and purposes…
This is nothing more than an unfortunate hiccup and there is NO need to panic.
Of course, we’re going to exercise caution – but panic is for those who let fear rule their logic.
We will come out of the other side of this and we should be fine – a little bruised and a little winded – but otherwise, we’ll be ok.
Don’t sell positions out of fear or panic – if you do – that money is gone forever. If you’re a GorillaTrades subscriber – don’t do ANYTHING with any positions unless you hear from me first.
I want you to know that we’re being vigilant and we’ll make sure that we have your back if things go south.
If you’re portfolio took a beating this week – I feel for you – but take a deep breath…
If you’re a GT subscriber – you’ll be getting emails from me letting you know what to do – and I’ll see if we can’t actually make some GAINS before this is all said and done.
If you’re not a subscriber – I urge you – there’s not a better time to become one, as I’m sure a lot of people are going to need a little help going forward.
So please… consider subscribing today!
If not, we get it…
Just do yourself a favor and continue to breathe. You’re going to be fine…
We ALL are.
“Panic causes tunnel vision. Calm acceptance of danger allows us to more easily assess the situation and see the options.” – Simon Sinek