Wednesday, 11 March 2020

The Coronavirus is on FIRE!

Mr Burns of The Simpsons
It goes without saying that COVID-19 sucks. It sucks big time.

People are getting sick with a small percentage of this bunch dying from the virus. Factories in China are being shut down, people are losing their jobs, the illness is spreading across the oceans into North America as we speak, the US economy is getting hit already and that's only the beginning as the giant public companies miss their forecasts and the investors and analysts alike will pummel the share price accordingly. Such is being a passive index investor.

But BEING the passive investor is incredibly convenient right now. Rather than trying to time everything out (has Coca-Cola seen its bottom? Should I sell now or later..?) you get to just simply keep buying one of everything and let the index do its thing. You'll likely invest all your money this year only to see it shrink because over all it's going to get worst before it gets better.

And that's ok. That's the point, actually. Because you can't time the market at the top or at the bottom you have no way of making a good decision yesterday or tomorrow, so the only logical conclusion is to keep on buying and deploy that cash as you get it.

It's easy to fear monger and I've already made a few predictions in this very article about where the stock market is going but I don't actually know the answer and neither do you. That's why its always the right decision to keep on buying. 

Nobody wishes for 9/11, for SARS or for any of the other horrible reasons an economic bust is on the horizon but here we are. As accumulators of wealth we ask for this recession in the hopes of buying the stock market on sale. Take advantage while you can because horrible things like this are out of your control but buying the entire stock market is entirely in your control.

So while you watch all the morons running around and buying up all the toilet paper at Costco and Wal-Mart, do yourself a favour and buy VGRO instead (or whatever index it is you buy!). 

Happy sales!

Ryan Myricks
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1 comment:

  1. Thanks Ryan for this much needed post!