Coronavirus Infects Stock Market: Part XXIX
Imagine falling 200 feet while descending Mount Washington, slamming into a pile of rocks that prevents you from going over the edge—and needing a rescue.
That’s the scary scenario one hiker found herself in recently. “It was these rocks that ultimately saved her from plunging into the ravine, a fall that would have likely proved fatal,” said Fish and Game Lt. Mark Ober Jr. in a statement.
“Her companion was able to descend to her position, place a call for help and keep her warm with a space blanket until rescuers arrived.” The hikers were rescued with the help of the Cog Railway train.
What if the rescue team couldn’t get to the hikers? What if the Cog Railway train wasn’t available? Would the hikers be alive today?
Most hikers leave the parking lot with good intentions, as do most boaters when they leave the dock. Investors are the same way. No one expects to get hurt.
But bad stuff happens on the trail, on the water, and in the markets.
Yes, accidents happen, but most can be avoided. A false sense of security leads to trouble. Which makes you wonder, when it comes to your investments, is the government making you safer with its interventions?
If the government is picking survivors, will you be saved?
That’s why it’s times like these when you need to question everything.
For bond investors, how dependable are credit ratings when the government is choosing the winners and the losers? Intervention creates distortions. Finding the winners and avoiding the losers will require additional preparation.
You just can’t afford to be stuck in a situation where you fall 200 feet or get lost in the fog, and depend on a lifeline that may not be available to you.
Investing after the coronavirus will have winners and losers. The key is to understand and to plan accordingly.
Read my entire series, Coronavirus Infects Stock Market here.
