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Market, corona virus, panic

Reading Time: 2 minutes

The US stock market started to feel the heat of corona virus in recent weeks. This week is the worst in term of the percentage loss (8%) and the fear of the market.

Along the same lines, so much fear among the ordinary people due to the news such as Tom Hanks got infected, NBA / NCAA games cancelled, Italy was getting into situation like Wuhan (healthcare system was overwhelmed), and the quarantine / shutdown of the whole country. I can feel the fear of the market as my friends talked much more about the market on wechat.

Last time things were like this, in terms of both the percentage drop (and the speed of the drop), CNBC running extra evening shows, and friends got excited and discussing stocks nonstop (at mitbbs, trader1688, gutone etc websites, no wechat app yet). Then comes the craziness of the stocking things from grocery store or drug stores, from hand sanitizer to toilet paper, from food to drinks. I do understand the situation in Italy and other countries. I also understand the “under-test” of US sick population. It’s improving as time goes, just as the WH made announcement this afternoon. As to the “buying craziness”, I still think it’s unnecessary. When this thing first started in Wuhan, China, friends here asked about buying face masks. I did not listen. I may still a few left in my year 2017 trip. But I am not overly worried. I am cautious though: try to stay away from the crowds, including office. I think we will likely to overcome this.

While for me compared to 2008/9 financial crisis, I am both older and have 2 young kids, I am not overly scared. I do have some savings and lift insurance. I will try my best to keep myself from getting sick. Short term it will be horrible for many people who have less meanings. We should try to help if / when we can.

Last but not least, I maintained a wiki page for the corona virus at github. You may also note I made some changes to this wordpress website recently. Started about a year ago to upgrade the WP to 5.0 (manual) to the upgrade a day ago. I am still trying to figure out things as I made changes, for example, I found out the comments not longer show: I likely did intentionally a while ago to battle the spams, but I could not put it back as the has. Also note is moved under (site consolidation, I don’t want to pay $18 for the domain name). I had the domain in 2010 when my first daughter is born, and I think going forward I am ok with the only. A lot has changed since I have the domain, with the virus I think longer term we will use more internet, web, devices and virtual learn / interaction instead of physical. This is a bit unfortunate, but we live in ab “adapt, or die” world.

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Step back

Reading Time: < 1 minuteThe market is full of news these days, and it looks like the drama will be on for a while. But will “tape reading all the time” be helpful for investing? Interestingly I read an abstract of an article on this topic (written by a finance professor at Wash. U.), his conclusion is no. In other words, step back from the market may work out better. But the human nature of “making quick money” can be felt everywhere, especially in China these days. Do we really want to miss the next big thing?

As I was also reading Buffett’s essays (annual letter to his shareholders), I felt I need to learn systematically about finance. I also wanted to learn more about “how to valuate a business”, which is the key to long term investing.

Amid all these, I decided to scale back my blogging frequency a bit, from two posts a day to one post every 3, 4 or 7 days. This hopefull will also help relieve the stress of my hand. I wanted to save key strokes and mouse clicking, so that I can continue to work as programmer for the foreseeble future.

As a side benifit, I may be able to write better quality articles now that I’m scaling back…