Investing After the Coronavirus

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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.

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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.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.