I’ve previously posted a listing of 23 investing risks and how to protect yourself from them. Unfortunately, I now have to add a 24th risk: Pandemic risk.

We are in the throes of a worldwide epidemic that is threatening to spread. Hopefully, it will be contained. The stock market has been reacting to the uncertainty, lack of current information, misinformation, poor containment of existing cases, and a dearth of leadership to deal with these crises. Initial negative reactions are often swift with sharp decreases in stock prices.

Investors like stability, continuity, and predictability. They also like sustainable cash flow, growing sales, margins and profits, and evident long term viability of a brand and business model.

Presently there is much uncertainty and where it will end up is questionable and to consider the worst, is, at least right now, unthinkable. However, at some point, we must feel confident that the virus will be contained and eradicated. If that is how you feel, then staying the course is an appropriate way to proceed, i.e. sticking to your plan. If, however, you do not think it will be contained in a reasonable time and that there will be considerable economic damage, in addition to everything else that could occur, then perhaps you would need to reevaluate your plan.

What you do is your call. We seem to be facing a new and nascent threat. It is an unknown episode in our lifetimes. I cannot suggest how you should react, but whatever you do, it should consider how you think the economy would be ten years from now, not 10 days or 10 months.

Here is a link to my blog listing my 23 original investing risks.

Do not hesitate to contact me with any business or financial questions at [email protected] or fill out the form below.


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