PANICKING WILL NOT ERADICATE THE CORONAVIRUS PROBLEMS

 

Fears of health and economic fallout from the coronavirus outbreak pushed the U. S. Stock Markets into Bear territory (down at least 20%) this week. Of course, we are ALL concerned, but panicking has never fixed any of my problem. {Maybe with the exception of that monster from my childhood closet. It was YUGEEEEE!}

PLEASE STOP HOARDING TOILET PAPER {WHY TOILET PAPER?}, SANITIZERS, AND EVERYTHING ELSE!

 

You can’t find hand sanitizer in stores, and N95 face masks are being sold online for $1,300.00, never mind that the best way to protect against the virus – WASH YOUR HANDS WITH SOAP AND WARM WATER FOR 20 SECONDS.  Ladies keep an eye on your boys – of ALL AGES!

 

Healthy people who are hoarding food, masks, hand sanitizer and yes strangely enough toilet paper, may feel like they are doing the right thing but may be causing harm to others. When such efforts are not directly in service of protecting the right people, not only do they miss the point of everything we have learned so far, they may actually unwittingly be squandering what have suddenly become precious and limited resources.

 

Initial reports have overestimated the COVID-19 mortality rate at about 2–3 percent, quite similar to the 1918 pandemic. That is DEAD (pun intended) WRONG. The death rate is artificially high because our big spending government could not ramp up test kits, so only those with known exposures are getting tested.   The best estimate for the fatality rate is data from the Diamond Princess cruise outbreak.  Of the 3,711 people on board, at least 705 have tested positive for the virus (which, considering the confines, conditions, and how contagious this virus appears to be, is surprisingly low). Of those, more than half are asymptomatic. This alone suggests a halving of the virus’s true fatality rate.  On the Diamond Princess, six deaths have occurred among the passengers, constituting a case fatality rate of 0.85 percent. Recognize the average age of cruise passengers is higher than the U. S. population average age, so the 0.85 rate is probably high.

 

It appears COVID-19 is a relatively benign disease for most young people, BUT a potentially devastating one for the old and chronically ill.  Instead of complete closures of schools, colleges, etc we should commit more of our resources toward protecting those truly at risk of developing critical illness and even death.  Protection still largely comes down to hygiene and isolation. We need to focus on the vulnerable people and the right places. Nursing homes, Hospitals, Etc. We need to up the hygienic and isolation around the subset of people who can’t simply contract COVID-19 and recover the way healthy people will.

We all need to help seniors and the immunosuppressed stay healthy.  Call and check on your parents, grandparents, older neighbors.  Run to the grocery store or to pick up medicines and other needed supplies.  Let’s act like a community.

 

IF YOU DON’T KNOW WHAT TO DO – DO NOTHING

UNDERSTANDING YOUR 401K

 

A 401K or Retirement account is for long term investing.  Over your working decades, the market will look like a roller coaster, so ride it like a coaster.  Hold on, scream if you want (I do) but stay on board! As you near retirement you should have been reducing your stock exposure.  So now may be the time to obtain the help of a Certified Financial Planner to advise you on reallocation of your positions to suite your age and risk tolerance.

The market has always recovered and then continued to rise.

 

STOP READING EVERY CNN SPECIAL ALERT AND TURN THE DAMN TV OFF! 

Have you noticed the quality of the “Breaking News” alerts over the past few years?  I suggest they change the title to “Breaking Wind”!   There are several news channels on 24 hours a day.  They LOVE bad news.  Take a few glances but keep on doing what you need to do.  Do NOT let news feeds dictate your emotional experience or your ACTIONS.  Even harder, the same goes for your portfolio.  It’s fun to check when the market is going up and you are singing “I’m a Genius”.  Few of us are feeling like a genius right now.  The market will rebound, but first we must get over the health crisis.

 

GIVE YOURSELF 24 HOURS BEGORE MAKING BIG DECISIONS!

If the market’s downward moves have made you consider pulling out of the market altogether, raise your hand.  Yes, my hand went up, I’m human!  But I know from making this mistake twice, when I withdrew from the market, I had no clue when to come back in. And I lost out on the earlier gains.   DO NOT make rash decisions.  Speak with a financial/investment expert.

 

Investing for the future in your 401K or other accounts remains one of the best ways to accumulate long-term wealth.  Even now with these 20% corrections, your investment contributions should remain as regular as clockwork, through market highs and lows. Add in the fact that many employers are paying into your 401K and this is a GREAT work perk, that SHOULD be a no-brainer.

 

WEALTHY FOLKS BENEFIT FROM DOLLAR COST AVERAGING – WHY DON’T YOU? – $ WEALTH BUILDING POWERS

DO YOU WANT TO CRUSH THE MIDDLING 401-K INVESTORS? THREE FUNDS THAT’S ALL WE NEED! – $ WEALTH BUILDING POWERS

DO YOU WANT TO JOIN THE 401K PLAN MILLIONAIRE CLUB? {KINDA OF LIKE THE MILE HIGH CLUB – BUT A LOT LONGER LASTING!} – $ WEALTH BUILDING POWERS RETIREMENT %

 

WAIT 24 HOURS

 

 

The best way to keep from acting impulsively is to use a waiting period, 24 hours, before making big long-lasting decisions.  That waiting period allows you to acknowledge the emotions you are experiencing and calm down.

If you are scared about your investments and do not know what to do, ASK FOR HELP.   Find someone to confide in that can help you feel and behave more rational.

Take the time to call a professional or a knowledgeable friend.

 

CONCLUSION – HELPING OTHERS AND COUNTING OUR  BLESSINGS

My wife came home yesterday and told me, we are blessed we can afford to shop for groceries and our incomes are secure.  There are people and neighbors in our communities that are much more affected from the coronavirus.  Let’s not forget so many of our fellow citizens are hurting.  The U. S. economy is 70% consumer driven and as we shelter in our homes, we stop shopping, eating out, etc. negatively impacting those consumer jobs.  As schools close many parents cannot get to work.  The travel industry (airlines, hotels, tour guides, etc.), restaurants are closed or impacted and laying off employees. Taxi, Uber and Lyft drivers are seeing a significant decline in passengers.  The list goes on for those Americans that have lost considerable if not all their income.

Dr Ben Carson, Secretary Housing Urban Development. said  “There’s nothing wrong with godly principles, no matter what your faith is: loving your neighbor, caring about the people around you, developing your God-given talents to the utmost so that you become valuable to the people around you, having values and principles that govern your life,” “Those are things that made America zoom to the top of the world…”

Please consider helping others in any way you can.  Donations to food banks, your local churches, United Way, etc.

I leave you today with a simple prayer, for our government officials, our industry leaders and every American.

Andrea Bocelli and The Mormon Tabernacle Choir – The Lord’s Prayer

https://youtu.be/G290ttZR_rM

Our Father, who art in heaven,

hallowed be thy name;

thy kingdom come;

thy will be done;

on earth as it is in heaven.

Give us this day our daily bread.

And forgive us our trespasses,

as we forgive those who trespass against us.

And lead us not into temptation;

but deliver us from evil.

For thine is the kingdom,

the power and the glory,

for ever and ever.

Amen.

 

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ABOUT ME

I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger, with a NC State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.

 

I left a corporate career because I had a desire for making a difference as a speaker and writer, to help others. I was blessed to be coached and mentored by strong women and men in both my family and professional life.  It is my time to serve and give back.

DISCLAIMER

 

I started my first business at ~13 years of age (small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate and happy to share my personal finance and investment lessons learned with you.

However, I am NOT a licensed financial advisor.  Please do not construe my suggestions on this blog, as recommendations for your personal situation.  For individual finance advice please seek your own licensed CPA or fiduciary financial advisors.  

I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.

 

 

 

 

 

 

 

 

 

 

 

Powers Investments Management, LLC

This blog will provide, information and simple strategies, that will assist you to achieve YOUR financial objectives and long term targets. For over 30 years, I solved multi-million dollar problems, for Fortune 10-250, companies. My formal education includes: Business, Finance and Chemical Engineering {Problem Solving} at: Harvard, Rutgers and North Carolina State. And an additional 30+ years, managing my family’s investment decisions. I currently manage/advise people with net-worths ranging from the tens of thousands to several million dollars.

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