Regular readers of this blog may remember that because of the time that we inhabit, because of the accumulation and application of ever-increasing knowledge, because of the speed of change, and the acceleration of knowledge and change I believe that this time is different. It is. In so many ways.
At this moment we are aware of and contending with an expansive transmissible virus which can be deadly for many people. Diseases and health threats are not new, nor are they different in terms of the potential negative consequences. What is different now is our ability to understand the causes and effects of global threats and the speed with which we can respond.
This morning you are likely seeing and hearing new information about the coronavirus pandemic and the disruptive economic repercussions of it. Economic disruptions are not new, not different. My purpose here is to provide information which might assuage your concerns and help you direct your thoughts more productively. Think about protecting your own health and the health of others.
The information that I refer to is a report offered by a Morningstar analyst which concludes that while there will be a significant “hit” in 2020, the long-term economic impact of the coronavirus pandemic will be minimal. The analysis can be viewed here.
For investors with sufficient liquidity this is probably a very good time to buy stocks.