Don't Panic
By Jim Bauer
@porwest (78761)
United States
February 26, 2020 9:04am CST
You would think I would be in a panic right now. For certainly the last couple of days the stock market in the United States has taken quite the slide. They're blaming it all mostly on the Coronavirus.
But even as I see my portfolio has plummeted tens of thousands of dollars in just two days...
I am not in a panic.
Markets go up. Markets go down. It is the nature of the beast. You just have to have faith that you have made the right picks in companies, and that despite what market influences are doing to a share price, that ultimately the underlying value of the stock remains intact.
I am simply looking for bargains and scooping up additional shares on sale. It is part of the reason I keep quite a lot of cash on the sidelines. In order to take advantage of opportunities exactly like this.
Incidentally, as I write this it looks like the markets are up about 300 points. We will see if it holds to the end of the day.
Just playing around with a Coldplay song I liked. I recorded this back in June of 2008.
18 people like this
17 responses
@FourWalls (62165)
• United States
26 Feb 20
The corona virus, as JJ pointed out in a discussion a couple of weeks ago, is nothing new NOR rare. It’s a more potent strain of the common cold virus. And it has a 89% survival rate.
Still, I don’t “invest” in the stock market or anything else like that. I’m sorry for those who do, though, having their portfolios take a beating because of really crappy media frenzy reporting.
4 people like this
@porwest (78761)
• United States
26 Feb 20
When you are keen on the markets, market trends, and certain things that artificially sink a stock (or the entire market), these can actually be opportunities. It hurts to see the drop in the interim. But the underlying math that makes up the company's valuation does not change just because the market decides to go one direction or the other.
I DO agree that the entire Coronavirus thing is way overhyped. I am just waiting for it to be blamed on Trump. 
2 people like this
@FourWalls (62165)
• United States
26 Feb 20
@porwest — thanks, I did. Thank you for catching that for me!!! 89% is what I meant.
2 people like this
@just4him (306386)
• Green Bay, Wisconsin
27 Feb 20
I remember back in high school there was a topic on the stock market and how to invest. I couldn't grab onto that no matter how I tried. It was so far over my head.
I'm sorry the market is down. Good to see it's on the rebound again. I hope it keeps going up for you.
2 people like this
@porwest (78761)
• United States
27 Feb 20
@just4him Ouch. That's a heck of a way to get started. BUT, getting into the markets can be like that too. You lose more money than you make when you start doing it. BUT, you eventually figure out what you were doing wrong and improve your strategy and the rest is history.
And, don't get me wrong. I still lose money. I just make more than I lose. If I could not lose anything I could greatly improve my gains percentage.
1 person likes this
@porwest (78761)
• United States
27 Feb 20
I hate to EVER bring politics into anything. But there is another aspect to this and that is that the media has been wanting to find a way to downplay this economy for a LONG time, and this was their chance to throw a story out there front and center. The fundamentals are all that matter and they are very strong, so all this really is is an opportunity to buy stocks at a discount.
1 person likes this
@dgobucks226 (34370)
•
29 Feb 20
It did not hold for long 
Yes, correct market assumption there. I will be reshuffling my portfolio to take advantage of this 12 percent dip. To regaining my losses and future gains 
Yes, correct market assumption there. I will be reshuffling my portfolio to take advantage of this 12 percent dip. To regaining my losses and future gains 1 person likes this
@dgobucks226 (34370)
•
4 Mar 20
@porwest Well, right now not many. But I did like Zoom (ZM) video since many companies will be utilizing teleconferencing more with this coronavirus. Many are investing in precious metals one I am looking at is Newmont mining (NEW) or GDX and GLD. A company like TJX (TJ Maxx) could do well if we go into a recession. They buy up products on sale from companies going out of business and have no exposure with China. I just bought WM (Waste Mgt) which should do well in uncertain times. It's a necessary service.
But I'm trying to be cautious with all this volatility right now.
1 person likes this
@porwest (78761)
• United States
5 Mar 20
@dgobucks226 Precious metals seem to do pretty well, so anything to do with that does seem to be a solid investment. Stores like Dollar Tree, Family Dollar, and Dollar General all did very well during the recession, for obvious reasons, and I can certainly see why a store like TJMaxx might do well. I think Waste Management is also a good choice, although there is sooo much competition in this space, but Waste Management is a bit more diversified than some in this space as well, so they are better positioned than some.
As for this volatility, I stand by my thoughts that it is temporary, and things will return to normal sooner rather than later. This is the time to buy. Especially companies that will see little or no impact whatsoever from this Coronavirus thing IF there is an impact at all. For example, utility companies. People will use electricity no matter what...and actually may use more of it if they are home more.
1 person likes this
@Nakitakona (56302)
• Philippines
26 Feb 20
No worry for me as far as stock exchange is concerned for I haven't invested or bought stocks.
1 person likes this
@porwest (78761)
• United States
26 Feb 20
I imagine the stock market has much less impact in the Philippines than it does in the United States since I imagine less people there are involved in it. Here, almost everyone is at least nominally tied to it since most people have IRAs and 401ks.
1 person likes this
@porwest (78761)
• United States
28 Feb 20
@Nakitakona It's unfortunate that more 'regular' people do not have as good access to the potential to make more money for themselves there.
1 person likes this
@Nakitakona (56302)
• Philippines
28 Feb 20
@porwest You're right. But the rich are investing more in stock exchange here.
1 person likes this
@marguicha (215481)
• Chile
26 Feb 20
Panicking is the worst one can do in any situation. Even if you are in a house on fire, you have to keep your head.
1 person likes this
@MarshaMusselman (38659)
• Midland, Michigan
27 Feb 20
I understand the market going up and down plus I have very little saved anyway. I'm trying to pay off my debt before storing money away that way. I'm also expecting God to show me opportunity to make more once I'm retired.
1 person likes this
@MarshaMusselman (38659)
• Midland, Michigan
2 Feb 21
@porwest it may be the worst plan on the world but I don't have extra at present to put money away. I have a 401k that's inherited and my sister will help me with moving it around this summer sometime in the hopes of getting it to make more for me than it is at present..
1 person likes this
@porwest (78761)
• United States
3 Feb 21
@MarshaMusselman Everybody can save money no matter their financial situation. But either way, at least you have SOMETHING, and that will help.
1 person likes this
@TheHorse (205814)
• Walnut Creek, California
27 Feb 20
Long-term investors should just chill and not worry about corrections. That said, I did skim off a few thousand dollars the other day and put it into cash at 2%. I told my broker I wanted to get out before the last recession occurred. I didn't like those risky house loans. He said I should not, and I listened to him. Had I listened to myself, and not him, I would have bought back in at 6500, and be a richer man than I am today.
1 person likes this
@TheHorse (205814)
• Walnut Creek, California
28 Feb 20
@porwest I always have SOME money in the market. Long-term investors have to ignore corrections and all of that cr*p. But I've also been skimming a bit over the past few months. Some (but not all, unless the market returns to 6,500) of the cash I have on hand will go back into the market eventually. I just have to figure out "when."
1 person likes this
@porwest (78761)
• United States
27 Feb 20
And when they go down, so long as you know where and why, and have a good feel for how long and how low...
You can also short the stocks instead of buy them and make money that way, or engage in some options contracts to mitgate and hedge the risk.
1 person likes this
@FayeHazel (40248)
• United States
26 Feb 20
True, and I hope you found some stocks that will be a good buy
1 person likes this
@piyushbhatia1 (11698)
• India
4 Jul 20
In the world of stock market there are times when great opportunities arise. All.depends on how much the appetite is to jump on to that opportunity. How much the invester understands the need of his own versus what goes on in the market.
1 person likes this
@cherriefic (10400)
• Philippines
26 Feb 20
I'm not bothered as well. Just let the investments sit there. It will pick up anyway.
1 person likes this
@arunima25 (85328)
• Bangalore, India
26 Feb 20
Markets keep fluctuating for every small reason and we can't predict it much. Corona virus is a real threat now both to health and global economy.
1 person likes this
@porwest (78761)
• United States
2 Feb 21
By now I have come to the conclusion it was not Covid that had a global economic impact. It was the decisions made about it that did that. BUT, the stock market IS up. Doesn't help anyone necessarily get a job. But it is nice to see the markets have done well despite it all...
So far.
