Investing In A Minefield

  • Things are getting to get worse, likely to be a lot worse. The U.S. is now passed the containment phase.
  • The next phase is limiting the spread which necessitates much more economically costly measures, compounding the damage coming from abroad.
  • The immediate worries should be the risk of the healthcare system getting overrun. Given the limited capacity margins, this is a distinct possibility.
  • Stimulus can only do so much, it should be mainly focus on the direct victims, as this will also limits the spread of the virus.
  • If you haven’t done so already, selling some positions into rallies and/or hedging is advisable. Nobody knows how bad this will get but there is little doubt it could become very bad.

Source: Investing In A Minefield | Seeking Alpha