InvestNow News – 9th April – Pie Funds – A Message from Mike: Hang on for the recovery

8th April 

Mike’s update on how we see things unfolding as coronavirus fall-out spreads

Hang on for the recovery

Fight the urge to run for the exits

At times like this you want to run for the exits. To sell. Everything.

As an investor, you are thinking this situation is dire and will only get worse and worse. However, you must fight that emotion because you want to hang on for the recovery. Hopefully, you recognise what you feel is the opposite emotion to what we feel at the top.

Which is to buy. Everything.

There is no walking away from the fact that the effect on GDP and unemployment figures because of the necessary lockdowns will be very, very significant. 2nd quarter GDP could fall 30%. Unemployment could reach 15% in the developed world. No country will escape. It will hurt.

While I think some might underestimate the impact, nobody can say they don’t know what’s going on and why.

We have no precedent for COVID-19 to draw conclusions from. Right now, it feels like we are all scrambling in the dark. But if you get the torch out on the phone, you can’t see four corners of the room, but you can figure out where the exit is. As someone fascinated with history, and historical context, I feel I’ve found some pieces of information helpful to navigating our way through this.