March 12: A small group of friends have been kidding each other over the years about our investing acumen. Many years ago, a couple of them found a small drug company that they felt certain to be on the verge of announcing a major breakthrough. With much anticipation they bought in and – of course – within days the company was bust. I contributed to the litany on woe by buying Nortel at the absolute apogee of it’s climb up the markets. I was told by everyone that I spoke to – including the brokers I used – that it was safe and would not lose money. Within weeks it was headed down and I was told to hang on to it: “It will recover in time.” We know how that ended. Obviously, the collapse of Nortel was entirely my fault.
So it was that last week I decided to invest a very small sum in and ETF that tracked the TSX 60. The market had wobbled a bit and had been down for a few days so I thought that it might be time to put some money in “near the bottom”. The very next day it dropped 30% so obviously I had not lost my touch with the markets. Like most people, I was not amused, but I was comforted by the thought that things will ultimately return “to normal” and markets should recover over time.
Then that moron in the White House went on national TV to reassure people. The markets fell off a cliff the moment he began speaking in the Oval Office and had their worst downturn in 80 years. I thought I was good at wrecking the market but perhaps he’s right: he is a genius. He takes destruction of value to another level entirely.
Anyway, it is what it is. I am not alone. Others have far more at stake, and are suffering much more dire consequences than me. In time, things will return to normal – whatever that turns out to be. In the meantime, stay healthy. Wash your hands. Be good to each other.