Investing in Novovirus Climate
Investing advice: On a seriously declining market session (300+) what should an investor do? Depends on the investor:
Retail (i.e. comparatively small) investor, buy and hold strategy:
Given all microeconomic aspects of one’s portfolio have not changed, then as tides raise or lower all boats, similarly for all equities:
Hold. Do not sell unnecessarily into a large decline. Allow reversion to the mean (average) or 200 day moving average price, to recover some, if not most lost market valuation (theoretical loss).
Should one buy selectively to obtain at a market discounted equity, which is otherwise in good financial shape?
Possibly, and after a few hours of accounting Fundamental and Technical (charts) Analyses applied.
Indirect supply chains involved with selected equities may suffer some negative affects that may not be obvious, so wait a few days, to buy/accumulate.
“Opening trade on the rumor, closing trade on the news.” – Restivo
What to look for in the news that is leading:
Success in restricting spread or slowing of spread of Wuhan Coronavirus.
News of success in HIV treatment applied to Wuhan Coronavirus, which was selectively used successfully against SARS over 13 years ago.
Success in treating secondary infection with anti-bacterial drugs.
Much lower death rate than expected.
Should one receive an anti-flu inoculation? Cannot hurt and may help combat the disease, as it is similar to influenza.
Should one receive an anti-pneumonia inoculation? This will help against secondary effects that tend to kill older patients (60+ years of age). Consult one’s physician or go to nearest emergency to inquire.