If you were part of the millions who lost a small fortune in the 2008-2009 financial crisis, then this Coronvirus fear and stock market shocks should be a cakewalk for you.
It felt just like this a decade ago, but it lasted for like 15 months.
But I’m here to tell you, “Don’t panic.” Since the Great Depression, America has survived World War II, The Cuban Missile Crisis, SARS, 9/11, and the Great Financial Crisis.
As Annie once sang: The sun will come out Tomorrow Bet your bottom dollar That tomorrow There’ll be sun!
We will get through this. You just have to buckle up and get through the ride like any rollercoaster; it has to come to an end.
Markets dropped 1,100 points on Thursday. That just means stocks are on sale.
I’m strolling down the stock market isles grabbing everything I can get my hands on.
This isn’t the time to hide. Stay and fight for your 401(k). It’s the time to run to the nearest online brokerage and scoop up some stocks on sale.
Berkshire Hathaway is sitting on $100 Billion cash just waiting for another 2008-2009 so they can get those deals.
Nobody wants to pay $3,000 for one share of the S&P when you can get it for cheaper.
So go out there and find some bargains!
SHOULD YOU BUY OR SALE
“Fearful when others are greedy and greedy when others are fearful.” – Warren Buffet
I once read a story about a famous investor who in 1939, when World War II began in Europe, the 26-year-old investor borrowed $10,000 and bought 100 shares each in 104 companies that were selling at $1 a share or less, including 34 in bankruptcy.
A few years later, he made large profits on 100 of the companies; four turned out to be worthless.
This became the foundation for his $13 Billion global growth fund and the start of his road to wealth. He did not let fear stop him. His own the world philosophy made him a billionaire.
Sir Templeton looked fear in the face and marched ahead anyway.
Trust your gut and don’t make any decisions unless you know what you want to do. Fear is no place to make decisions from.
When you are coming from a place of great loss, you don’t sell the house, cut your hair, or make any big decisions until you are back in a place of control over your emotions. At least, that is what all the books say.
Same rules apply when investing. Buy when you are knowledgeable and ready. Not scared.
Knowledge is the slayer of fear.
FLIP A COIN
I could tell you what you should buy. The gurus and financial pundits will tell you that you should invest in this or that, blah, blah, blah, etc. etc.
Well here at Greenbacks Magnet, we keep it simple.
Just buy a good quality total index fund and keep it moving.
Studies have shown that no one can time the market. If you put 25 random stocks on a dartboard, you could do no worse than an active fund manager could by throwing darts to pick your investments.
It’s like the flip of a coin. 50/50 odds or worse. Tails you lose. Heads the house wins.
If you buy the whole market, you are bound to get some winners in there.
PUT YOUR FACE MASK ON FIRST
They say face masks are being bought up all over the world.
The mark up is getting unbelievable as some places are charging three times the normal going rate.
The surgeon general says masks are only good for those already infected to not continue to spread the virus.
Those that are healthy are wasting their money because a mask will not stop them from catching it.
Therefore, instead of wasting money on overpriced masks just invest in the company that makes them. They are making a killing right now!
Increase your wealth portfolio and put on your fiscal facemask for your future generations.
Your future self will thank you for investing that money.