When climbing Kilimanjaro, the guides mandate Pole Pole right from the beginning. Pronounced Polay Polay, it means Slowly Slowly in Swahili. The guides know well that if you don’t walk painfully slowly, the effects of altitude sickness will be quicker and more brutal when it sets in.
Pole Pole is my investment advice for this Corona Crash. This is not a flash crash and most of you are not momentum traders at least not with your retirement money. A friend this week reminded me what Baron Rothschild advised., “the time to buy is when there is blood on the streets” another friend quoted Warren Buffet, “….be greedy when others are fearful”. The state of the union and the world right now is panic and uncertainly. …there is carnage in the stock market. But proceed with caution. Another Buffet quote is “only when the tide goes out do, we discover whose been swimming naked”. A lot of people and companies have been riding the bull market wave. Now that wave has closed out, we need be wary of the those who won’t be able to pay their bills. Not to mention as I’m sure you are all aware by the activity around you that the response to the Corona virus has only just begun.
Take it slow. Nibble on long term investments. Don’t be swayed by wild movements in the market …finding the bottom is a fool’s errand. When taking it slow and small, your gutfeel as to when, will not steer you wrong.
And if you are buying individual stocks, there is starting to be good value out there again. But consider that this is an unprecedented event and could well be a tipping point to many aspects of how we live and spend our money.
Move slowly and pay attention in the weeks to come.