March 23rd

The United States has continue to grow cases as the Coronavirus spreads out. New York is officially on lock down, Indiana/West Virginia/Michigan starts on Tuesday, and here in FL we still have businesses open.

New York cases have sky rocketed now to over 20,000, up almost 40% overnight. This is beginning to show how bad it’s going to get, and the Surgeon General has basically said to expect some terrible things to happen.

The Federal Reserve stepped in a touted pretty much unlimited buying of corporate bond ETF’s, an effort to prop up this market that I am not sure is going to work for a substantial amount of time. The stimulus package has been turned down multiple times now as the government continues to fight with each other about helping Americans, yet are still not helping them.

The Olympics in Tokyo have officially been pushed back a year, something that shows the severity and duration of the problem that the world is facing.

Globally we are at over 360,000 infected and over 16,000 deaths. This is about a 4% fatality rate. Astonoshing.

The Markets

The markets looked like they were going to hit stop limits early, then actually came back a bit in the early trading with the Feds stepping in with their bond purchasing announcements. This was like putting a band-aid on a gunshot wound though as the markets still were around 4% down.

Mid-day the markets looked to turns things around as their was hope that the stimulus bill would be passed. This, of course, was rejected again around 2pm which led to a sell off.

There are strange things happening right now as the panic is setting in and people are trying to get liquid. People are losing jobs and fearing that they need their money have begun to pull it out of the market, something that is bringing all ships down to lows. There are companies right now that are selling below their cash per share holdings, which is crazy, but when to get in is the biggest question of the day.

The S&P 500 is currently down 31.9% in a month! Yes a single month. This is completely nuts at this point, although we are looking at a once in a lifetime event happening so maybe it is just the right amount of nuts.

How fast the market has fallen from its recent highs when the economy seemed untouchable is insane and frankly hard to comprehend. These losses will be spread far and wide and there is right reason for people to be scared right now, but holding firm and being patient with my strategy is what I am trying hard to do.

I fully expect us to near 2000 in the S&P before this is all said and done. I will be buying into good companies all the way down.

I am currently sitting on about 25% cash.

Today’s Activities:

Added to:

Starbucks (SBUX) - Continue to see value in this company as it has given up almost 50% from its highs.

Disney (DIS) - Added a small amount here to my current holdings. We all know they will be hit this year with park revenue taking a break but its not going anywhere in the long term. I will continue to add as the decline continues.

Thanks for reading