Since I really don’t know much about viruses I have tried to avoid writing posts about Covid-19 but for this one thing I want to chime in. That is what this post is all about.
I think there is enough panic about the Coronavirus going around now and I certainly don’t want to contribute to that. Personally, I am modifying my daily life by limiting my public exposure. I am going to the grocery store only once a week now. I have also stopped eating out, you just don’t know if the person preparing your food has washed his hands recently. Finally, my weekly mall walks are on hold. Doctor’s appointment, which I seem to have constantly, are kept. My wife’s immune system just wouldn’t take a hit by Covid-19.
With all this personal stuff covered I now want to get to the point of this post. The Stock Market is crashing now and people are panicking! That doesn’t make any sense to me. Of course, people will avoid getting on an airplane now, that is obvious. They are also not going to theaters, amusement parks and such. Many like me are just hunkering down waiting to resume our normal activities until this round subsides. That seems a reasonable response, and of course that means that we are spending less money and certain companies will lose sales.
Anyone who even knows a little about economics realize that this is a temporary thing? As soon as this epidemic subsides things will go back to normal. Even the Fed are in this panic game by halving the Fed interest rate. I will likely get involved by being a contrarian and buying some stocks that take a disproportionate hit. But since I am mostly out of the stock market that will be more of a game than anything serious for me.
I know common sense has little to do with corporate America and especially the stock markets. One of the primary factors driving our national decline, that is besides the despicable person in the Oval Office, is that financially we just can’t seem to look beyond tomorrow. Everything has got to be about now, and right now things aren’t so good so the stock market collapses.
Yes, we as a world have a lot to be concerned about but a temporary drop in sales or stock prices is not one of them.