Coronavirus Infects Stock Market: Part XXVII
You’ve told some heroic stories about your loved ones on the front lines and your children who are doctors and nurses working 19-20 hours days. Some of you who work in hospitals now are telling me it’s a war zone, especially those of you in New York.
Thank you. As the number of Americans losing the battle is peaking, I think all of us are thankful for the good that we have in our lives.
As I wrote to you yesterday, it is shocking how this virus has ruined the finances of those that should have been better prepared. How a large group of investors could completely fail on their investment strategy in times of trouble is concerning. It’s also troubling to learn how few investors have cash on hand for emergencies, no understanding of the counterbalancing properties of bonds, no gold, no weapons for self-defense, or a thought on the subject for that matter, and no safe-haven stocks.
This unprepared group is always dependent on something or someone to take care of them, whether it’s the stock market or the police. That’s just an irresponsible way to live, especially in times like these.
I was talking with a client yesterday who’s been with us since 1995. He said he was in the driveway talking with his neighbor, who recently lost his wife and is selling their house. It’s California, so there’s going to be a sizable gain on the property which the neighbor has lived in for 55 years. As my client walked away, he almost fell over when his neighbor said, “I’ll do OK once I pay my mortgage off.”
My client said, “E.J., this guy’s been in that house for 55-(you fill in the blank) years and still has a mortgage! That tells you what’s going on in this country.”
If you have a mortgage, pay it off.
If you have a child or loved one with a 30-year, make sure they refi to a 15-year.
Get out of debt. Make sure big fat 30-year mortgages are in the past. That’s the responsible way to go today.
Read my entire series, Coronavirus Infects Stock Market here.
Originally posted on Your Survival Guy.