Private Equity

Everybody take a breathe!

I have seen this before, and more than once. 1987 stock crash (Black Monday) I had to remind people that they will still have their dogs bark in the morning. The Sun will come up, and the dam birds will chirp. In that situation, it only lasted two days but the market started a gigantic leg up for the next 13 years.

More recently; 2008.

100-year institutions were brough to their knees and the financial crisis was born. Again, brought about by greedy bankers selling collateralized loan obligations which were filled with crap. The Central Banks once again tried to manage the situation, which I believe was a mistake; one we are still paying for. I know after 35 years in the Industry, that nothing can control the markets. You can do it for a short time, but you must let things play out themselves. What was the result of 2008? Twelve more years of a one-way stock market: up.

Inflation

One thing that they could never get going was inflation. You see you need inflation; it’s kind of the magic gas in in the engine. With the whole world now in hibernation until April, and everyone now on equal footing at Zero rates, how do you think we will come out on the other side? I will argue better, stronger, and with a new appreciation for healthcare….and oh yes; slopping around with free money.

Health Issue vs financial situation

So, what are we really dealing with? We have a virus that has been here for ages…. this is not new. We have the world mobilized, like a war effort to contain, test, and solve. This isn’t a hole in the ozone or a nuclear bomb, where radiation will kill us…THAT’S time to panic!

Its not an Alien attack or Zombies where you must “kit” your house out for attack.

This is a push to protect our older neighbours, which is one royal “pain in the butt”. I’m at the bottom end of the high-risk group, being 60. I get it and understand. But this too shall pass. We will come out of our houses in a couple of weeks to a zero-interest world, a thirst to let our hair down, and I suspect more money in our pocket than we realize right now.

So, with the benefit of hindsight and some common sense, realize people! You have a 97% chance of being ok if you are one of the few that get this. This is NOT a death sentence .It’s a bad cold. The full weight of the largest industry in the world is working on solving this today.

The sun will come up tomorrow, the birds will chirp, and the dogs will bark.

Go order some Chinese and put on a movie.

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