In the same way that it can be awkward to discuss “after death” financial topics with someone from whom you might be getting an inheritance, talking publicly about investment possibilities that are coming on the back of a stock market that’s plummeting due to fear of a COVID-19 pandemic… it does feel a little bit wrong, but the opportunities of a down market also cannot be ignored. 😐
The Dow Jones has lost more than 12% of its value over the past seven days of trading. Unfortunately, the cause isn’t solely due to “scary thoughts” around the spread of the virus. 😟 With China being ground zero, the precautions that need to be taken and the effects that are already being experienced by the industries and workforce there… it was inevitable that markets around the world would reflect the disruption. 😳 Global economies, global trade, global investing… it’s all great stuff, until it isn’t.
Before COVID-19 was even a thing, I had already started researching different types of investing that my family (historically speaking) never really took advantage of. 🤔 I’ve tended to use methods that I’ve seen work for my dad and my aunt, and they probably used methods that they saw work for their parents. 🧐 It makes investing feel comfortable, but the returns are usually modest in comparison.
The volatility in the markets isn’t going anywhere, so I’ll have plenty of time to continue reading, learning, and eventually planning… even if “the plan” ends up being that I don’t change much of anything. 🤷🏻♂️ And while loads of people have been cashing out, to “protect” their gains from the past year or longer, the farther the markets fall – the better it is for folks who are only just now wanting to get in. 🤨
I suppose I should mention that I’m not thinking about individual stocks when I’m talking about all of this. I don’t know enough yet to speculate on individual companies and their ability to bounce back. I’m thinking mostly about ETFs with holdings that are properly weighted to match gains / losses of the Dow. 😐🤓
Historically, you’re on pretty solid ground if that’s what you’re invested in… but just as there have been extremely good years, there have been some really bad ones as well. More often than not though, the gains for each year have been remarkably good. (Which doesn’t mean a heck of a lot if you didn’t buy your shares on (and only on) January 1st of each year… heh) Meh… just kinda thinkin’ here… 🤷🏻♂️🙂