Like most people who have money at risk in the stock market, I took some time out from walking dogs and playing with the world’s most beautiful granddaughter this past weekend to read the financial press and some of the various blogs and research sites I follow.
The current thinking is skewed towards the tails with either “buy the dip,” or “run and hide” being the prevalent suggestions right now.
There is very little rational thought being applied in mainstream information services right now, and it’s difficult to tell if the world is ending sometime in the next several days or if recovery is imminent once the spread of the virus slows down.
We’re living in a very news-driven phase of the market, and the story (for the most part) has been pretty bad.
It doesn’t help that we live in a world where ad spend and clicks are the most critical measurement and shouting louder than your competitors is more important than having real information.
Let me be upfront. I have no idea how the virus spreads (or doesn’t spread) over the next few months, or how the stock market will react to what happens.
What I do know is that when the markets make big swings, the knee-jerk reactions from Wall Street can create wildly profitable environments for patient, aggressive investors.