The COVID-19 virus is reaping havoc on the world. Those fortunate not to contract the coronavirus are still affected.
Small businesses are being wiped out, and countless people have lost their jobs, 401ks have dropped dramatically along with pension funds.
The reaction to the coronavirus does not make sense. There is something wrong here. The world economy has been destroyed because of a virus that killed less than 12,000 people.
Follow the worldometer to get a daily update on the number of confirmed coronavirus cases.
Even if 40% of the world population got COVID-19, the death rate would be less than 3% (8% for the elderly).
There is no putting this together again as if nothing happened.
I’m not one for conspiracy theories; however, there seems to be a hidden agenda that world governments are not aware of.
This is intentional economic destruction that is being carried out for an undisclosed purpose.
How else can you explain the reaction to the flu that kills older people suffering from a preexisting health complication?
How can you benefit from the coronavirus pandemic?
With COVID-19 responsible for so much destruction, is there any good that can come out of this?
Regrettably, the lives that were lost due to the coronavirus cannot be brought back. My thoughts and prayers go out to those families that have lost a loved one.
I am also praying for the people that have lost their job, business, and livelihood.
If you have lost your job or been asked to go a few weeks without pay, you know the importance of an emergency fund.
The good news is that the world we get through this. China is on the road to recovery, and things are slowly returning to normal.
Not only will everyday life go back to normal, but the economy will eventually recover. The lost jobs will come back. Large corporations and small businesses will start hiring again.
But, what about investment portfolios and the 401K and IRA accounts. When will those come back?
In time. It will take a few years, but the value lost will come back.
In the meantime, the decline in the DJIA, S&P, and Nasdaq has created a buying opportunity.
There is no better time than now to benefit from the coronavirus to recoup lost money.
Now is a great time to buy stock in really good companies that are undervalued.
Don’t invest in index funds right now
I’m a fan of index funds and have spoken about the ease and benefit of investing in indexes in a previous post.
However, I don’t think index funds are the best option right now if you are looking for strong growth.
I like what CNBC’s Jim Cramer said.
″The problem with the index funds is that you inevitably own both the winners and losers; and the difference between winners and losers has become too stark for that to make any sense,” he said, thumbing his nose at airline, oil, restaurants, entertainment, retail, bank and tech stocks for being “too hard” to own in this environment.
“That’s where the opportunity comes in, people. There are many industries that are truly on the ropes here, and I expect them to remain on the ropes for a long time, unless they fall flat on the canvas,” he added.
Invest in defensive stocks
He also said, “Check out your medicine cabinet, check your refrigerator, look at your pantry.”
Companies like Conagra, J M Smucker Co, and Clorox were among the biggest gainers during the season. Conagra shares spiked 9.76%; the later two rallied more than 4%.
These companies, as mentioned above, are great defensive stocks. Defensive stocks can outperform the broader market during an economic downturn because there is a constant demand for their products. They make consumer goods we can’t live without.
Conclusion
In the age of electronic money, money is never lost. It’s only transferred. As one person is losing money, another person is making money.
While one currency is losing its value, another is gaining value.
While the longs and buy and hold group lost trillions due to COVID-19, the shorts made a killing.
Perhaps learning what hedge fund or private investor groups held the largest short position is the secret to all this coronavirus madness.
As the saying goes, “Follow the money.”
If you want to make money and don’t have time to chase conspiracy theories, pick a defensive stock from the Dividend Aristocrats.