After reading many articles on the outcome of the US during this crisis with the COVID – 19 virus, I wanted to put my two cents in, and hopefully provide some clarity, understanding and solutions to this occurring problem.
News articles and editors are painting a dim picture for the United States. People are starting to wonder if our country will go into a recession or a great depression. Truly, to me, this depends on how well the quarantine works by May. If the quarantine reduces the cases and we find a cure by then, I believe we will have a V shape recover and return to somewhat normal state by the first quarter of 2021. Keep in mind, things will be much slower due to the loses of employment, the decline in the stock market and the lack of hope. People will pull back from spending.
If the virus is not controlled by May then the country could be in real trouble. Even though we probably would not lose our supply chains, the country over all would not be operating in any normal capacity. With this type of collapse, the economy probably will take two to five years to recover on the optimistic side, regardless of stimulus by the government to keep the economy afloat.
I believe that our government will lift the quarantine by May, regardless of the number of corona virus cases. Which could lead to, ever citizen for them themselves. The hospitals will be overrunning with patients with limited supplies and if you have a severe medical problem, other than the virus, good luck seeing a doctor. If the government was smart,they would open isolated hospital just for the COVID –19 patients. Hopefully by the end of May, we will find some sort of medication to help the sick and come up with a vaccine within the next eighteen months.
So, what does that mean to you. If you are employed you might find yourself unemployed, if you own a business you might find yourself out of business. Some relief is on its way with government pay checks to single individuals making less than $99,000 and couples with less than $198,000. The paycheck is $1,200.00 per person and if you have children an additional $500.00. If you own a small business the government is willing to provide a loan for your employees to help with salaries. Go to this link to see more information https://www.sba.gov/funding-programs/disaster-assistance
What should you do with your income or wealth? First and foremost, hold on to it and spend reasonably. Secondly, look for opportunities.This can be an excellent time to buy at a discounted rates, for example; cars, boats, fine art, jewelry, gold, silver and other commodities. Also, of course, real estate, businesses and commercial property.
If you have money in the stock market, you should look hard to see which way this crisis is headed. You can get out altogether if it is not too late, short the market, or buy in. Hopefully you have a good financial advisor giving you the right advice. If not, this is where Diverse Investing can possible provided education and solutions on how to find a good financial advisor.
The founders of Diverse Investing built this platform for just this reason. When times get tough the individual or investor would have a balance portfolio across all asset classes including, real estate, businesses and asset protection. This website was created to help educate investors and help them understand how important it is to diversify their wealth.
As one can see, with this crisis, not all industries will be affected as strongly as others. For example, if you own an online business you are still probably in business. If you own real estate and have good tenants, you are still collecting rent. If your portfolio is diversified with safe investments, then you have a better fighting chance then the next guy. Here is a link to the smart investments currently https://www.msn.com/en-us/money/savingandinvesting/21-smartest-ways-to-invest-your-money-right-now/ss-AADlbvC?ocid=msedgdhp
Other things to think about is your estate planning, asset protection and life insurance. Do you have a will or trust? Do you have enough insurance? What is the best outcome, if something happens to you? With our classes and instructors, you can find the answer you are looking for and if not, maybe our team of investors can help. If you have any questions or need answers with anything feel free to contact us.
Good Luck Everybody and Be Safe.
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