From the UBS morning report…
“If incomes can be protected, some consumer spending continues in a lockdown. Around 60% of spending is stable or increases (housing, food at home). 15% of spending is delayed. 25% of spending is lost – that is where stimulus is needed. We should also remember that markets always underestimate the adaptability and resilience of people in a crisis.”
Re-read the last sentence. This is so true. People as well as the stock market are incredibly resilient. The markets will bounce back rather quickly when this is over. You will be buying more shares at a lower more real price. This is a major correction and if you sit tight things will explode in a positive direction.
A friend of mine said that he looked at his 401K and started to cry. He is 45 years old and has easily another 20 years of work life. I told him stop worrying about today. You don’t need that money today, you have another 20 years to grow it, look how much you had grown it over the last ten years. So don’t look again until this is over and then see what you have as an abundant windfall that will begin growing again soon.
Stay calm, turn off the television, reduce sugar intake, eat some fruits and vegetables, drink a herbal tea, and get outside and embrace nature. Today is going to be a great day.
It’s all in your perspective. Yes we all took a pretty substantial hit financially. But we will bounce back quickly. We are an extremely resilient population.