Good afternoon,
Headline from Monday, “Dow plunges 1,000 points, gives up gains for the year…”
Yep. Because of the coronavirus fears. They say it’s disrupting business and commerce all over the world. Travel companies and airlines are being the hardest hit so far.
Is this true and who are the “they” that they speak of? Well, the DJIA decline is true, but is it justified? Is the coronavirus really such a big deal? Some other headlines blame coronavirus for more things.
“Coronavirus fears could push mortgage rates past 4 year low…”
Huh?
“10 year treasury yield falls to 3 year low on coronavirus fears…”
What?
“Oil falls more than 5%, sliding into bear market territory as coronavirus sparks demand fears…”
C’mon already.
“What does coronavirus mean for Chinese economy?”
Geez.
“Bernie Sanders promises free coronavirus cure for everyone…”
Ok, I made that one up. But I wouldn’t be surprised if he did say it.
Here is some sobering data about what exactly the virus is, https://www.theatlantic.com/health/archive/2020/02/covid-vaccine/607000/
Health concerns should not be taken lightly and you should certainly be vigilant, wash your hands, take your vitamins, etc. to protect yourself from becoming ill, but in the WMR’s opinion, coronavirus is just the “fear du jour.” We’ve had lots of them before, MRSA, SARS, Zika, Ebola, Swine Flu, et. al. and there will be others in the future. But don’t let them affect your investment strategy. They are short term challenges which will be solved by the smart guys/girls who work the problem. It is only a blip in the long term strategy of successful investors who shall continue to own shares in the constantly rising dividends of the greatest companies in the world.
That said, if you’re nervous about your investments, give me a call and let’s talk about it.
Coincidentally, or not, CNBC just happened to have a long interview with Warren Buffett in which they asked him, among other things, about the coronavirus. To his credit, he says exactly the same things he’s been saying for the last 50 years. For example, he reiterates that his long term outlook has not changed because of the virus. Warren Buffett is 89 years old and he’s still preaching long term outlook. Other 89 year olds wouldn’t be buying green bananas and Buffett says “we buy businesses to own for 20 or 30 years…” Same gospel he’s been spreading forever. Amen Mr. Buffett.
Watch the entire interview here:
https://www.cnbc.com/2020/02/24/warren-buffet-interview-live-updates.html
And since we just saw this headline, https://www.cnbc.com/2020/02/25/disney-partners-with-impossible-foods-at-its-us-parks-and-cruise-line.html
And have already devoted part of this WMR to health concerns, here’s one that is a bit of a pet peeve for us. Just exactly how healthy are those “plant based” burgers that everyone seems to be touting these days? We suspect that this is intentional, but doesn’t it appear that when ABC Food Chain advertises their latest non meat burger, they are implying that it’s healthier than its animal based counterpart. Forgetting for a moment a person’s ethical objections to eating animals, it turns out that those plant based burgers are highly processed with high saturated fat and manufactured using genetically modified oils. Which is perhaps why they don’t taste like plants.
And the next part of the narrative, that plant based products will save the planet is also highly questionable. First, the implication that the planet needs saving is questionable, but even if that has some truth, there are just as many, if not more, resources necessary to produce acres and acres of plants and then process them as there are for raising animals. So as we often suggest, before you believe what you see/hear on the interwebs or whatever the media is touting at the moment, get the data and do the homework.
And since we’re talking food, here is a food related podcast I listened to this week with Dr. Peter Attia and his guest, Dr. Mark Hyman. Dr. Hyman is the head of the functional medicine department at the Cleveland Clinic. Full disclosure, I am a patient of that department at the Cleveland Clinic, though not a patient of Dr. Hyman himself. This podcast is not so much about functional medicine (which I suggest everyone learn about) but concerns our broader food system and how inefficient and wrong it is. Dr. Hyman doesn’t just wax about how bad the system is, he tells us why and offers suggestions to fix it. Here is the podcast,
https://peterattiamd.com/markhyman/
You may also recognize Dr. Hyman from his book and PBS appearances, “Food: What the Heck Should I Eat?”
That said, if you’re nervous about your diet, give me a call and let’s talk about it.
LF26 – “Let food be thy medicine and medicine be thy food.” – Hippocrates.
Have a great week.
CRN-2966669-022520
Michael J. Acho, MBA, CFP®
Private Wealth Advisor
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Lincoln Financial Advisors/Sagemark Consulting
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Southfield, MI 48075
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