Bob Ferrell, a longtime Merrill Lynch advisor, now retired and 88 years old, wrote 10 rules for all investing.
Rule # 10
“Bull Markets are always more fun to watch than bear markets”
After reaching all-time highs, the equity markets fell off the cliff last week. Which, of course, created the next “End of the World” news cycle. However, with a strong 2019 performance and markets reaching new highs, it was time for something to happen. The coronavirus news may have been the tipping point that sent the equity markets down 12-14% in one week. But we were way overdue for a market correction. So, what happens next remains to be seen.
As I’ve said many times, I’m not a prophet. However, I have attached one article and a link to another that may shed some positive light on the situation we find ourselves in. One thing I do know for sure is that our free market, when turned loose, is the most powerful creative engine ever discovered. It’s called Capitalism and there is a race to find a vaccine for this virus. In the meantime, common sense and good hygiene never hurt anybody. Also, please remember the common flu kills about 60,000 people a year. Now, if we could only get the politics out of this issue, we could see our country keeping this virus and its effects to an absolute minimum.
As for the equity markets, I don’t know if the correction has run its course or not. We could see a further decline. But, a couple of really smart people have commented that equity prices are very attractive. If you have any questions or wish to talk about this or any other part of your financial plan, please do not hesitate to call. Now it’s on to next week so let’s all make it a good one.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.