Thursday, March 12, 2020

Unless your companies that you own the stocks of are going bankrupt mostly it's better to stand pat at this point

and wait it out. I remember clearly how many middle Class investors divested themselves of all their stocks before or after March 6th 2009.

begin quote.
The DJIA hit a market low of 6,469.95 on March 6, 2009, having lost over 54% of its value since the October 9, 2007 high The bear market reversed course on March 9, 2009, as the DJIA rebounded more than 20% from its low to 7924.56 after a mere three weeks of gains.
end quote

After March 6th 2009 or before most middle Class people divested themselves of all stocks. It was one of the worst decisions they could have made (as long as they could live without those monies for about 10 years). Because the stock market has been the biggest driver of new wealth ever since then.

Also, the stock market fundamentals are still good and business is good. It is ONLY the coronavirus which is changing everything sort of like a new World War II for the world. This problem will continue likely until enough countries PEAK in coronavirus numbers. It might be much higher percentage wise than China which was willing to drive many of their citizens insane like has happened from being basically imprisoned in their homes in various parts of China. That just isn't going to fly in democracies so like many many more people will die in democracies as a result of our freedoms. And it likely will be even worse in non-democracies now around the world especially 3rd world nations because of no health care facilities that much in most 3rd world nations as the virus hits various countries more and more.

So, after coronavirus peaks the companies that had enough savings or capacity to borrow money to stay in business will still remain. Researching which companies that have enough savings or have borrowing power and the will to stay in business might be important for worldwide investors right about now.

So, when will coronavirus deaths Peak in your country?

That's the million dollar question right now all over the world.

Because all companies and businesses that didn't have enough savings or borrowing power will be gone or in Chapter 11 bankruptcy re-organizations at that point or before.

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