The Great Crash of 2020 - COVID-19

For those of you that aren't aware, the stock market is crashing HARD due to the coronavirus.

The Aussie market is down over 30% from it's high in just a few weeks, and no one knows when the carnage will end...

But it will end...

The reason you get high returns in the stock market is because of the uncertainty.

Uncertainty is the price you pay for high returns.

And right now there is incredible uncertainty in the market because of the implications of coronavirus.

This is my first time living through a severe market crash as an investor.

I've read all about past crashes, but now I'm living through one.

It's a completely different kettle of fish.

I'm not going to lie it's made me feel sick in my stomach watching the value of my portfolio drop (on paper) and my balls have been tingling...

I've been nibbling at shares on their way down ('feeling the fear and doing it anyway').

Prematurely? Possibly.

Solid blue-chip companies and ETF's are now trading at very attractive discounts.

As a long-term investor this severe drop in the market will produce an AMAZING opportunity to purchase outstanding companies at discount prices!

Now, I wouldn't be jumping in anytime soon (although personally I already have).

I'd wait for the dust to settle.

Catching a falling knife can end in tears...

I can only imagine the legendary investor Warren Buffett would be licking his lips right now!

"Be fearful when others are greedy, and greedy when others are fearful"

Is what he famously preaches.

Well right now the whole world is FEARFUL.

Am I afraid?

Yes.

But as a long term investor I know this will pass.

There will be more short term pain, but 10, 20 or 30 years down the track I KNOW my portfolio will be worth far more than it is right now, and I will have a delicious stream of dividends coming my way.

I'm buckling up and enjoying the ride!