Last weekend I did some research on the coronavirus. (I’m definitely not an expert in this field).
My filter bubble.
Bill Gates shared his perspective in his latest article;
Now we also face an immediate crisis. In the past week, Covid-19 has started behaving a lot like the once-in-a-century pathogen we’ve been worried about. I hope it’s not that bad, but we should assume it will be until we know otherwise.
Read the article here; Responding to Covid-19 — A Once-in-a-Century Pandemic?
Then we have people that keep saying; ‘don’t panic, more people die from falling from the stairs or drowning in the bathtub’.
Well, Nassim Taleb has some advice here:
For those still unable to understand that death from multiplicative processes such as corona are NOT to be compared to those from thin-tailed sources, see Chapter 3 of the new book:
Be informed, and plan;
Planning now and doing something means we can control how well we cope with some of what may be coming.
You can read some great advice in this post; So you think you’re about to be in a pandemic?
It’s time to buy (or not)
From chaos comes opportunities; looking at the markets, this is now definitely the case. Are we at the bottom? I have no idea.
But After you bought enough rice and beans, you should spend some money on the markets if you are able to.
What Happens to Stocks After a Big Down Month?
Here’s the good news about huge monthly losses from the past; 56% of the time stocks were higher one year later. 72% of the time they were higher 3 years later. and they were higher 80% of the time 5 years later.
I’m in no position to give investment advice. What I can do is share my strategy.
I use Koyfin and StockTwits to follow the markets and follow some people on Twitter and subscribe to their newsletters. Based on that, I make my own decisions. Diversification is important and my focus is on the long-term.
The biggest part of my portfolio consists of ETFs, but in times like this, I definitely buy some company stocks. Besides that, I’m building my own ‘remote fund’. Here you find the inspiration behind this idea.
Let’s end with a great tip from @howardlindzon.
If you set up great filters, the internet creates excellent opportunities.
Enjoy your week!