Survivalism & Self Sufficiency Topics > COVID-19 Coronavirus Pandemic

Economic impact of the COVID-19 coronavirus outbreak

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Another big down day for the markets.  We’re more than 10% below all time highs.

David in MN:
The 10 year bond hit an all-time low overnight. According to CNBC it hit .318% which is downright pathetic.

As bad as a few investing benchmarks are there also humanitarian disasters. Syria and Turkey are in a dust-up and Greece is shutting down refugee travel. So we have a very unknown disease combined with migration issues that literally had EU leaders calling Greece the "shield of Europe" for halting immigration. Don't think it's a little thing. They mobilized the military. If Greece and Turkey go hot it's the EU vs. NATO.

This also sits on the current economic course where China has heavily invested in Africa, arguably the least prepared for a pandemic.

I think this is what is dragging down markets. We just don't know how bad this is and how it will effect things. It sound mundane but if Africa gets it hard small things like global coffee and chocolate prices could go haywire. Leta alone that semiconductor makers in China use elements mined globally. We don't know where the disruption will hit. While I don't think this is the "big one" price instability and supply chain disruption along with migration hostility can be brutal from an economic view.

This is what is great about keeping core investments diversified in Harry Browne's permanent portfolio structure.  The rise in gold and treasury bonds more than compensates for decline in stocks.  So portfolio is actually growing.  that growth can  now be used to rebalance into stocks at much better prices.  It was interesting to see bond prices rise by over 6% in a day.  Congrats to those who diversified.


--- Quote from: David in MN on March 09, 2020, 08:32:41 AM ---I think this is what is dragging down markets.

--- End quote ---

Nah... Today's not about COVID.  It's about Russia.

To clarify - It's directly related to COVID, but it's one of the many layers built in the jenga puzzle.  Russia pulled the wrong block out at the wrong time.  Whether intentionally or not is TBD...


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