With Coronavirus cases being reported in 56 countries in six of the seven continents, it has created a global concern about its health impact as well as the economic impact. Today we talk about how the Coronavirus outbreak might impact your portfolio and how we should react as investors. Grant also studies by Charles Schwab and Vanguard on market timing, and how they relate to markets now.
Show Notes
[00:41] A quick look at the situation – Some quicks facts and stats about the outbreak and its effects on the stock markets.
[04:58] Don’t panic! – Grant explains, with numbers from similar previous incidents, why you should not panic even if it sounds scary.
[06:22] It doesn’t matter when you’re in the market; it matters that you’re in the market – Grant talks about two interesting studies done by Charles Schwab and Vanguard that shows us how timing comes into play when investing.
[13.18] Dividends and interests – Grant explains why you should invest and take advantage of dividends and interests rather than waiting for the perfect moment to invest.
[14:47] Going through market drawbacks – How to avoid poor decision making in a time of crisis and holding on till the market bounces back.
[17:52] Contingency planning – Grant talks about planning for worst-case scenarios.
[21:55] Final thoughts – Grant explains why you should keep a consistent investment methodology in times like this and how all the empirical data points to the fact that you should remain invested and take advantage of dividends and interest.
Resources
Charles Schwab’s Study on Timing the Market: bit.ly/2TxAVy5
List of stock market corrections after WW2: cnb.cx/2VCVyvB