Coronavirus Thoughts

March 13, 2020

The coronavirus is a human tragedy that has deeply affected families around the world. We are praying our most vulnerable neighbors are protected as we work to eradicate this disease.

Some general thoughts for investors

This doesn’t feel good. Watching your investments lose value is never fun. Especially when uncertainty seems to grow by the day. This is why they call investing a discipline.

Long-term thinking will help in the long-run. As an investor, being oriented toward the long-run is a decided advantage in times like these.

Perspective might help. As of March 12, 2020 the stock market is still higher than it was in December of 2018. 

This is the first pandemic in the social media age. We would be wise to remember that information spreads quickly, but so does misinformation. Keep in mind that sensationalism gets eyeballs, clicks, and likes.

We’re in an election year. It’s unfortunate, but the coronavirus has been and will continue to be politicized. Be aware.

News and social media might be the cause for our anxiety. Our anxiety levels are tied to the amount of time we spend watching or reading news and social media. 

Things will likely get worse before they get better. But expectations of good news are low, so any good news will likely be received well by the market.

Two things can be true at the same time. The coronavirus is a big deal AND we’ll make it through this. 

Should we be pessimistic or optimistic? Probably something in the middle. It’s likely that things will not get as bad as the worst-case scenario and they will not be as good as the best-case scenario. 

Nobody saw this coming. Sure, there were those calling for a bear market for a myriad of reasons (and they’ve been doing so for the past 10 years), but nobody thought a global pandemic would be the thing that put us in a bear market.

There’s a lot we still don’t know. Markets don’t like uncertainty, so they’ll likely remain volatile in the short-run.

Having a financial plan is crucial for times like these. It’s a North Star when everything else feels disorienting.

What can we do

So where does all of this leave investors? What can we do? We have some tips.

Trust that God is in control. None of this is a surprise to Him.

Pray. Pray for our leaders, healthcare workers, and communities.

Stick with your financial plan.

Stay diversified.

Think long-term.

Limit the amount of news you consume.

Take preventative measures to slow the spread of the disease.
https://www.who.int/emergencies/diseases/novel-coronavirus-2019/advice-for-public

If you have questions about your investments or how we can help, please contact us. Thank you, and be safe!