Saturday, February 29, 2020

Build And Strengthen Your Investment 'Bunker' Amid Virus Fears

This week, a sharp rise in COVID-19 virus cases outside of China had spooked Wall Street, pushing the global markets into a deep correction. decade of long-term dividend growth investing has provided me with a 'bunker' for a crisis like this. I am going to take advantage of the market correction to start strengthening the walls of my 'bunker'. Those years of accumulated dividends and built-up capital appreciation act as a tough shield. 

My dividend portfolio kept growing despite numerous fearful events over the last 5 years

Some investors - experienced and inexperienced - were overcome by fear, seeking safety in cash and bonds. Panic selling doesn't seem like much of a plan if you ask me. Planning and organisation is key to long-term investing success. Have a plan and execute it. Revise the plan as the situation evolves, tweak it, refine it and keep plodding on. Take a long hard look at the list of stocks which you have extensively studied before. Consider buying some stocks on that watchlist. Deploy your spare cash in phases. Take a leap of faith. Every crisis is an opportunity in disguise.

Lastly, believe in our healthcare institutions. The world survived the SARS and H1N1 epidemics. We can survive COVID-19 too. We have to.

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