It’s funny how toilet paper seems to have become the rarest asset during the corona lockdown. At least it has become the running gag for the crisis to make fun of the fact that people are hoarding toilet paper as if it might appreciate in value.
This example also shows where the masses put their focus. They sell their assets (stocks) at a discount and worry about how they are going to wipe their behind in case they might actually run out of … ????
Imagine how everyone would storm into the supermarkets if toilet paper were on sale! ????%
Then why isn’t there a run on stocks as there are currently huge discounts?????
Of course there is a lot of uncertainty causing us to wait and see how things develop. Therefore it’s very important not to make rushed decisions. But you also don’t want the FUD cause you to miss out on some big opportunities.
Sure the market might still go further down and no one can tell how long the crisis will last or how long it will take to recover. That’s why I tend to rely on dollar cost average. That way I get to participate in the downfall without having to worry about hitting the best time to buy. And when the market starts going up again I enjoy my profits.
I also went live on Facebook about this topic. Watch me go into some more detail here:
