Known unknowns, and Unknown unknowns

Fear is the worst self-serving force of the human species. In regards to the coronavirus, all we know is that we don’t know how bad it can be because we don’t know how to treat it. Furthermore, we don’t know what we don’t know about what the governments know regarding the true impact of this still little-understood virus (try reading that sentence again). When we don’t know the nature of what we know is hidden… fear takes over. And it feeds into more fear.

Fear can also be a good investment opportunity. When there’s fear, there’s overreacting. Overreactions tend to cause price swings that do not make sense. When we see stock prices of JP Morgan Chase, Apple, Microsoft, and even safe stocks like Waste Management all drop, it forces one to come to their senses and set aside fear, if only for a moment. Is society going to go back to the Stone Age? Are we suddenly going to drop our iPhones? Will we get unplugged and never touch a keyboard or go online ever again?

As more people adjust their daily activities in order to avoid crowds, more people are staying home… and even working from home. Students can also complete classes and assignments online. Banking and entertainment can still be done online. These realities factor in to the coming recovery of cloud infrastructure stocks and just about every other company that has its foot in the cloud. Therefore… take a moment to stop, think, reject fear, and accept that there’s opportunities in the long run.

We don’t know what we don’t know…. but what we do know is that even at its worse case scenario, the coronavirus is still not as deadly as previous viruses that actually killed more people in less time. This is all fear-driven… and do not let it control your life or your finances.

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