The Coronavirus has been the trending topic around the globe. People are living in fear! Hand sanitizers and masks have become the top purchased items within the last few weeks. People are afraid to go out and be among large groups of people. Simply said, no one wants to be the next victim of the deadly Coronavirus! Most are aware of all the health consequences of this virus, but are many in tuned with how financially this virus has been affecting our pockets?
See, what we need to understand is that when people live in fear, their decision making shifts from long-term strategic planning, to more immediate and short-term, as people look to “stop the financial bleeding” and to save what they have now. As a result, those with investments, may tend to pull their money to keep it safe with them, while others are more cautious to continue investing. I am not sure how many of you periodically check the stock market performance, but in the last few weeks, most stocks are trending red (losing value). Am I surprised? Not at all. The reason is, many people make decisions based on emotions. The moment investors begin to gain confidence that this virus is contained or wiped out, is when the stock market will begin to see an uptick. Until there is some good news, things may continue to decline for a bit.
I personally have noted the financial impact of the Coronavirus. Within a span of 2 weeks (from February 11th to February 28th), my retirement investments have lost a value of over $4,000. Yes, a whole $4,000! But, am I panicking? Absolutely not! See, I view my retirement account as a long-term investment, which means that time is my best friend. Yes, I may be experiencing a decline right now, but over time, the market will bounce back, and value will increase. If you are closer to retirement, your investments should be more conservative in nature, which will help to sustain your “principal” value, versus having more volatile investments in your portfolio, such as stocks, if you still have a long way to go before reaching retirement.
If you haven’t checked in on your retirement investments as yet, do so now to see how you are financially performing. Until then, keep safe, and keep on budgeting, saving, and investing.