This Will Be The Worst Bear Market Of Our Lifetime

I expect in the next couple of years we’re going to have the worst bear market in my lifetime. The impact of the virus on economies will not be over quickly because there’s been a lot of damage. A gigantic amount of debt has been added. There is absolutely no question that throughout history, when you’ve had bear markets, companies with low debt are the ones that people love the most because they don’t have to worry about bankruptcy.

Jim Rogers: How Life Has Changed In Coronavirus Times

Jim Rogers talks about how his life has changed due to the coronavirus health crisis and also how unprepared the United States was not prepared for this.

Markets were overbought before the crisis started and that has not helped.

Other interesting topics:

Peter Schiff says gold is not a fear trade but a hedge against the debasement of the dollar: Gold Isn't A Fear Trade 

Ray Dalio on How To Raise The Probability Of Being Right.  

Coronavirus: The US Was Not Prepared

The United States has not been prepared and has not acted quickly and well. The world has known about the coronavirus for over 3 months yet the United States could not even test one million last week. This is a stark contrast to China, which has brought the virus under control within 3 months and is now helping other countries, while the US cannot solve its own situation.

Ray Dalio Insights (Part I)

Ray Dalio is one of the greatest investors and thinkers of our time. Ray has been sharing some valuable insights on his twitter account and here are a few of the most interesting:

On when to bet (very applicable to traders and investors):

You can significantly improve your track record if you only make the bets that you are most confident will pay off. Knowing when not to bet is as important as knowing what bets are probably worth making.

On not listening to uninformed people:

Make sure they’re fully informed and believable. Find out who is responsible for whatever you are seeking to understand and then ask them. Listening to uninformed people is worse than having no answers at all.

How meditation may help you keep an open mind and a bigger perspective on things:

In thinking about the principles that are helping me and might help you during this challenging time, this is one of them. I practice Transcendental Meditation and believe that it has enhanced my open-mindedness, higher-level perspective, equanimity, and creativity.

These posts will be expanded over the next few days with more interesting principles and topics.

Stock Market’s Gain Under Trump Vanishes

Interesting article in the New York Times about the stock market performance during the Trump presidency. Believe or not, the american stock market is now negative since President Trump took office: Stock Market’s Gain Under Trump Vanishes

But nobody loved it like Mr. Trump. He has tweeted about the stock market at least 131 times since becoming president. He kept a running tally of stock market records — 135 by his last count, on Dec. 19. He personalized the rally, referring to “my stock market gains.”

Social Distancing

James Clear, the author of Atomic Habits gives some interesting advice on how to practice quality social distancing on social media:

"You can practice social distancing on social media too. Stay away from people who are infected with negativity, a lack of generosity, an unwillingness to seek truth, etc."

The Coronavirus Crisis Will Be Fatal

Interesting comment made by Peter Schiff on how fatal this virus induced crisis will be for all of us:

"I was against QE, ZIRP, and bailouts in 2008 because I knew that instead of allowing the economy to restructure, those mistakes would exacerbate the structural imbalances that led to the crisis. Since we didn't swallow the medicine then, the #Coronavirus crisis will be fatal now."