Our first instinct may be to panic – to rush out and buy everything coming into short supply – if the shelf in the supermarket is emptying, I must need it too!. We want to be as prepared as possible – but will we actually use all of the items we have stockpiled? It reminds me of when toys become the must-have “hot” toy at the holidays – whether we want it or need it, we need to get it.. If we take a step back and consider things rationally, we might consider that yes, while the economy may be taking a hit, when people stop panic-buying and start looking at things logically, we may find opportunities and creativity-thinking may help. I noticed one popular restaurant in town now offers everything on their menu “to go” with curbside pickup available. A dance instructor is offering an online class subscription– a sort of learn to dance while you are stuck home. Looking further, if oil prices are coming down, it may be less expensive to manufacture goods and services which may help to stimulate economic activity. In the financial marketplace, the fundamental principle is buy low, sell high – not sell low. It can feel uncomfortable to keep an eye on long-term trends, goals, and objectives. This has given investors a true sense of their personal risk tolerance, something that may have been a bit skewed with such a long bull market. Let’s take a step back, let’s keep our emotions in check, and let’s make decisions based on logic not emotion. Buy low, sell high and put down the toilet paper.
Seek professional advice before taking any action in regard to your finances.
This information is provided for educational purposes and not intended as specific advice for any individual.