A DEADLYWAVE THAT CANNOT BE STOPPED
I share this story because I believe the coronavirus pandemic is a lot like a tsunami... It appeared with little warning. At first glance, it didn’t look that harmful... It was just a strange distraction happening miles away (or in this case, on the other side of the world). But as it approached, the dangers became apparent. And its impact became unavoidable. Now, roughly four months later, we know the coronavirus is a disaster on many levels. It’s a humanitarian disaster, reportedly killing roughly 400,000 people so far. It’s an economic disaster, forcing more than 40 million Americans out of work so far. And it’s a psychological disaster, putting a strain Investors seem to be saying, “We’re all OK. We made it through. Now, let’s get on with this bull market.” on our mental health as we’re forced into isolation for months. After suffering through several months of mandatory lockdowns since the World Health Organization declared the virus a global pandemic, most of us felt a bit like Edie did that morning after the wave struck... tossed around, dazed, and confused. Like Edie, we want to believe that this nightmare is over... The lockdowns in many states and countries are ending. And with the anticipation that everything will return to normal later this
year, folks expect to see a “V-shaped recovery.” The benchmark S&P 500 Index has surged to within 10% of its all-time high. The stock market today reminds me of what Edie thought as she resurfaced... Investors seem to be saying, “We’re all OK. We made it through. Now, let’s get on with this bull market.” These days, investors don’t seem that concerned about the virus at all. They’re more anxious about something else... the fear of missing out (“FOMO”) on the market’s latest rally. You may be suffering from FOMO, too... itching to jump headfirst back into stocks. That would be a big mistake . HOPE IS NOT ENOUGH Now is not the time to relax. It’s far too early to think we’ve made it through the worst of the coronavirus pandemic. You see, pandemics – like tsunamis – rarely consist of only one wave. And in both cases, the first wave is often not the worst. That’s why you need to know the rest of Edie’s story, which she shared in the 2016 book, Rinse, Spin, Repeat... Edie’s elation at seeing her boyfriend and family in the water after the first wave didn’t last long. Glancing behind them, she noticed another wave rapidly approaching... Edie was soon underwater again, fighting for her life. Once more, she made it to the surface and gasped for air. But this time, Edie couldn’t find her loved ones. She had little
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June 2020
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