What are the biggest mistakes a person can make during the coronavirus pandemic?
The biggest mistake might be surprising for some people. In essence, the biggest mistake is not taking advantage of events.
We can’t control events like recessions, virus’ or how government reacts to them apart from indirectly through elections.
So the fact that governments decided to go into lockdown and therefore make the economy worse than it would have been to save lives, as an example, is something outside of our area of control.
What we can control though is:
Our own thoughts
Our own actions and decisions
So what has changed as a result of coronavirus?
Well:
Interest rates are even lower than they were before
QE is getting bigger
We are moving into a digital world even more quickly than before
Taxes will probably go up in most developed countries.
The political blame games will begin!
So it makes sense to take advantage of these trends by investing in yourself (learning how to do things online as a business owner as one example) and financial assets that pay above inflation unlike the bank.
There will always be those that react in fear to moments like 2008 and March 2020 by panic selling their investments and panic buying.
Then there are those that keep calm, stay the course and even take advantage of events.
People who are always scared never seem to profit in the long-term.
Those that take advantage of trends, do.
