The Stock Market Is Crashing and Coronavirus Is Killing People: How Are You Going To Respond?

I had a whole different article planned to post today. But I tossed it in the trash.

The entire world is laser focused on Corona Virus. Everyone at work, the government, the news, my parents, all they can talk about is Corona Virus. I am shocked that the world is still even functioning. If you believe the hype we as humans about to enter the apocalypse.

The virus is serious.

People need to take precautions and not be around sick people.

Businesses will suffer. Entire industries are on the brink of collapse. Cruise Lines, Airlines, anything to do with leisure travel. The next year will be tough for these businesses and they will see big drop in revenue.

Turn off the news!

I had to do it. Every time I turn on the TV they are answer “common” questions about Corona Virus. The president is on TV. The governor is on TV. The number of cases is reported live. They are showing dead bodies being taken out of nursing homes. States are in a state of emergency. The entire country of Italy is being locked down.

Personally, I do not watch a lot of TV. I have 2 TVs in my house. My boyfriend likes to watch TV, but I personally like to read books. But for some reasons lately I cannot escape it. The news is driving fear and panic. Showing a run on the grocery store on loop, just causes more people to hit up their grocery store looking for more wet wipes. The news is not going to save you. If there is a real problem you will find out without watching the news.

Wash your hands. Do not go to work if you are sick. Practice common sense.

If I am being honest I am a excited that the stock market is falling.

Be greedy when others are fearful – Warren Buffett

My goal is to reach financial independence. I have a high savings rate. Currently, about 45% of my overall income.

Right now I am 30 years old. I started my investment journey around 2012. After the crash of 2008 which I still have scares from. Since that time the only thing the market has done is gone up. In 2008 I had no job or money to put into the stock market. So I was not able to purchase stocks at a discount. Today, I have job with a 401k and autodraft money from my checking account into my investment account purchasing shares of VTI – a total stock market ETF. Every week money is moved from my checking account into the market. You are chasing the market down, but it will pay huge dividends over time. I am not trying to time the market.

Dollar cost averaging works.

The process does not even require a lot of money. I have gone through several investment accounts. My favorite and the one that I use is M1 Finance. You basically create a “pie” of investments with a percentage for each investment and then your money is automatically invested into your pie. You could set up to move over $5 every week into your account.

You can find a way to afford $5 a week. That is $260 a year.

Play with the government investment calculator to see what your returns could be.

You can choose a total stock market index fund. Or individual stocks.

If you were really smart you would choose a few stocks that are being hit really hard by this virus episode. Like Airlines, Oil/Gas, Hotels, Cruise Lines, etc.

Here are a few stocks to explore

  • AAL – American Airlines
  • DAL – Delta Airlines
  • F – Ford
  • VIAB – Viacom
  • HAL – Halliburton
  • DVN – Devon
  • BP – British Petroleum
  • XOM – Exxon
  • MAR – Marriot

Then you would create a pie of those stocks and invest every week into those businesses. Do not even think about buying into them. Just do it automatically.

That is the investing side of this pandemic.

Now to the creation side.

Do not stop creating. In fact, create more. Increase your efforts. That can in your business, that can at home. This is the time to hunker down and get to work. You may not have a choice. You may have to work harder to pay the bills. Your business might suffer a lot.

But there is another reason. Your lifespan is limited, you do not have time to waste worrying about dying from a disease. Create as much as you can now.

Your planning will pay off down the line. The more you create now when times are tough for others, the more you will be prepared for the rising tide. The world will wake up again and come back to life. Italy will reopen, cruise lines will bounce back. Take advantage of this time. People are worried about their health, not what you are doing.

Do not ask permission, just do it.

Henry Ford did not ask permission to build a new car.

You have to be crappy and smart.

Lots of people during this time are going to suffer. Anyone that is in a service job may run into tough times as more sporting events are cancelled. People stop eating at restaurants. People stop taking flights, etc.

You are a manager of your resources.

Your biggest resource is time and I do not often manage this well.

Just today I was yelled at because someone was telling me something and I was multitasking instead of giving them my full attention.

So I was not ‘listening’

You have to become an excellent manager of yourself and the world around you. If you are an employee you have to manage tasks. If you are manager you have to manage employees. The CEO has to manage everything. But everyone first has to manage themselves.

The best way to get rich is to consistently create value over time. Whether you are entrepreneur or an employee. The more value you provide the more valuable you become and the more you can charge for your services.

Use this episode of Corona Virus to purchase as much as stock as possible over time. Buy things low in value today and let them appreciate over time. Create your own index fund by choosing a small number of stocks and then consistently investing in them.

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