The other day I was having a casual conversation with my cousin about Coronavirus and the recent stock market plunge. He said, and I quote: “Have no fear, this over-hyped flu bug will pass and stocks will be back up in time for summer vacation.” Now as much as I enjoy putting my feet up and kicking back with a beer on summer break…
…I said in reply that what goes up must come down, and vice versa. So, whatever the disturbance in the short term, “timing the market” is always a bad idea. I mean, who saw Coronavirus coming? Not me. Furthermore, over the long haul, the really smart money goes into real estate – as savvy investors all the way from DJT on down have repeatedly shown.
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So, when this article appeared in the Atlantic last week, I couldn’t help but send it along to my cousin, as a little dig at his Dow Jones certitude. Basically, says the author:
“No one knows exactly how much damage the Coronavirus will do to the global economy. But investors have to guess…. What I would say history shows is that a problem like this takes many months and maybe even a couple of years to play itself out. But, Wall Street’s idea of history is the last 10 minutes.”
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Then, from my son in Oregon, came a cancellation notice for the upcoming Lake Oswego Millennium Concert Band event, along with a comment:
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To which I can only reply: “When they start canceling band concerts, the wolf is at the door.” But hey, at least somebody is taking my advice about real estate seriously. With every cloud a silver lining, indeed.
Bottom line: No need to buy a mask.
Just wash your hands and sneeze into your elbow.
And invest where ever you’re most comfortable.
Oh, and also: What goes down, must come up.
But as for real estate investments?
Everybody’s gotta live somewhere.
And that’s an actual fact.
Postscript:
Market’s back up 5% after being down 10%.
And mortgage rates are at historic lows. Just sayin’.