During the last 30 days, the DJIA reached it's record high of almost 30,000. It has also lost over 20% in value during some violent swings down because of all the concerns around the Coronavirus. Some claim that the recent volatility has erased over $7 trillion in wealth in the last 30 days.
Why the Coronavirus May Not Be Bad for Investments
If you look at history, epidemics are typically good for investments. The markets actually recover much quicker than you would think.
Take SARS for example. SARS resulted in a total of about 8,100 people being sickened during the 2003 outbreak, with 774 people dying, according to data from WHO and the Centers for Disease Control and Prevention.
Separately, the S&P 500 rose 11.66% in the roughly six months following reports of the 2006 Avian flu virus — a fast-moving pathogen also known as H5N1. The market gained 18.36% in the following 12-month period.
Data are similar for equity performance across the globe based on data from Charles Schwab, tracking the MSCI All Countries World Index 892400, -3.64%. The index has gained an average 0.4% in the month after an epidemic, 3.1% in the ensuing six-month period and 8.5% a year later (see graphic below):
SARS, Avian Flu, Swine Flu, and Measels all produced significant market gains as quickly as 3 months after the initial outbreak.
My comments:
- $7 trillion in wealth in the last 30 days was erased? Nothing was erased, the stock market is a zero-sum game. Wealth is neither created nor destroyed, it is transferred.
- Punctuated by recent events, I would argue that angel investing is actually less risky than investing in publicly traded stocks. I would also argue that entrepreneurship is less risky than working for someone else. I will be hitting both of these topics hard in future videos.
Are you looking for investors for your business, contact us today, funding@omegaaccelerator.com.
Are you interested in angel investing and helping us fund early-stage businesses? Email info@OmegaAccelerator.com.
Click here if you would like me to personally consider investing in your business. If I do not personally invest, I will give you specific tips for finding funding. Unlimited follow-up meetings. 100% satisfaction guaranteed. https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html
https://www.npr.org/2020/03/25/820759545/read-2-trillion-coronavirus-relief-bill
https://komonews.com/news/coronavirus/online-stimulus-calculator
https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html
https://www.accountingtoday.com/news/congress-passes-trump-signs-2-2t-coronavirus-stimulus-package
https://www.marketwatch.com/story/heres-what-the-historic-2-trillion-coronavirus-stimulus-package-will-do-to-help-small-businesses-2020-03-26
https://www.fastcompany.com/90482750/applying-for-a-small-business-disaster-loan-what-to-know-about-the-covid-19-stimulus-package
https://www.fastcompany.com/90483112/here-are-the-most-infuriating-details-and-corporate-giveaways-in-the-covid-19-stimulus-bill
https://www.cnbc.com/2020/03/10/dow-futures-point-to-a-loss-of-more-than-400-points-after-tuesdays-surge.htmlhttps://komonews.com/news/coronavirus/online-stimulus-calculator
https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html
https://www.accountingtoday.com/news/congress-passes-trump-signs-2-2t-coronavirus-stimulus-package
https://www.marketwatch.com/story/heres-what-the-historic-2-trillion-coronavirus-stimulus-package-will-do-to-help-small-businesses-2020-03-26
https://www.fastcompany.com/90482750/applying-for-a-small-business-disaster-loan-what-to-know-about-the-covid-19-stimulus-package
https://www.fastcompany.com/90483112/here-are-the-most-infuriating-details-and-corporate-giveaways-in-the-covid-19-stimulus-bill
https://www.marketwatch.com/story/heres-how-the-stock-market-has-performed-during-past-viral-outbreaks-as-chinas-coronavirus-spreads-2020-01-22
https://www.linkedin.com/in/rencarlton
https://rencarlton.blogspot.com
https://twitter.com/RenCarlton
https://www.youtube.com/channel/UCmxQWgUDlPJo0IHCIa6SzrQ
https://omegalegacyacceleratorx.com/924-2/https://www.facebook.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html
Disclaimer: This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering any legal, investment, tax, or medical advice. Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties. All stories are based on true events, but are altered to protect the identity of the individuals involved.
https://rencarlton.blogspot.com
https://twitter.com/RenCarlton
https://www.youtube.com/channel/UCmxQWgUDlPJo0IHCIa6SzrQ
https://omegalegacyacceleratorx.com/924-2/https://www.facebook.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html
Disclaimer: This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering any legal, investment, tax, or medical advice. Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties. All stories are based on true events, but are altered to protect the identity of the individuals involved.
