Humans are not as adaptive as one might think. Right now, the economic herd is stampeding out of investments, many at a loss, because that’s what everyone else appears to be doing. Because Coronavirus is scary.
You can do the same (or not start investing to begin with), and the outcome will almost certainly be a loss, or missed opportunities.
Look at the market right now. We are on a roughly 11 percent decline in the S&P 500 since the end of February, with today’s 7 percent drop overall and the crush of oil bringing it home. At bare minimum, the market is much cheaper than it was a few weeks past.
If you break into individual funds, the story is more stark. QQQ shares are down by $43.00 since February 19th, or 18 percent. SPLG is off about 7 bucks, or 17 percent.
What about loner stocks? Well, we have AMD down $15.00, or almost 26 percent. CCL, cursed by its exposure to virus-impacted cruises, lost 22 bucks, or 48 percent since February 19th.
And this is just a small sample size. Stocks are on sale. If you have free money, or a retirement plan through work, give strong consideration to buying in now, and certainly if there is a further decline. Drops of this nature don’t come frequently, but once they do, money will be made by the patient and unemotional .
Or, you could be the guy saying, “I should have invested back then.”
3 thoughts on “Don’t Be The “I Should Have” Guy”
Is Oil a good investment now or do you think it will drop lower?
It’ll probably go a bit lower. I’ve never had much luck with oil, though I did make some money on Halliburton some years ago.
Seeing people freak out over corona virus isn’t even funny. It’s pathetic and scary. There truly is a thin veneer of civilization separating us from animals.
I’m buying 😄 💰 💰 💰