Stock Market Crash with Coronavirus Pandemic

Stock Market Crash with Coronavirus Pandemic

There are always 2 sides of news, outcome depends on which side you position. Learn further here to position in both Coronavirus and Stock Market Crisis.

1) Fear

Bad news: Coronavirus is now a PANDEMIC (declared by WHO).

Good news: It has been a fact (global speading) for weeks, only a label now

2) Wealth

Bad news: Global economy will get more hit (global travelling restrictions by most countries, consumer and retail sectors would lose money), global stock market would fall further (so far down by about 20%), people may lose jobs, etc.

Good news: Global stock market is cheaper now, investors could get highly discounted prices to buy stocks

3) Health

Bad news: Many people would die after infected

Good news: Fatality rate is actually less than 2%, even much lower for those less than 50 years old with stronger immune system.

There are in fact more people die in common flu each year, awareness in Coronavirus could directly help to minimize death in common flu, therefore more lives would be saved in this health crisis.

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So, stay calm, be cool, both for Coronavirus pandemic and also global stock market meltdown. However, one has to take active actions in both crisis:

Coronavirus

1) Enhance personal hygiene (wash hands, wear mask if unwell, etc)

2) Social distancing (avoid crowded places)

3) Stay healthy (exercise & healthy diet, optimistic, etc)

Stock Market

1) Buy – Mainly for contrarian investor (eg. Warren Buffett), aligned with lower optimism at country/world levels (L3-L4), stock market may have further downside.

2) Hold – Mainly for fundamental strong stocks which are defensive to sustain through possible global financial crisis

3) Sell – Mainly for trading stocks, exit following the plan (eg when down by 5%, 10% or 20% or breaking below certain price support).

4) Wait – Mainly for trend-following traders or investors for clearer market signal.

5) Shorting – Mainly for short term traders to align with current short term bearish market, profiting from shorting with breaking of support, following lower highs and lower lows pattern.

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Currently with 20% price correction in global stock market, it is still a mini bear, medium term investors may start to do homework but position only after there is a clear price reversal (eg. economic stimulus plans by G7 or fading of Coronavirus in summer time, etc) and cut loss has to be included in plan.

If not, need to be patient to align with longer term lower optimism, especially for Level 3 (US) and Level 4 (world), not just on individual stocks or sectors which are falling knifes in prices, not suitable for traders.

Do you feel better now that you have a choice to be positive or negative? More importantly, position in the right side with right action for both Coronavirus and stock market crisis. Learn from Dr Tee free 4hr investment course to convert the crisis into opportunity: www.ein55.com

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)