This stock market is full of drunken sailors, and you want to buy what they’re foolishly selling


The coronavirus is taking a terrible toll on human life and the global economy, but for stock investors, this crisis is an opportunity to increase the long-term return of your portfolio. Just as greed leads to more greed during a bull market, fear feeds on itself and leads to more fear. It is hard not to panic when the store shelves are empty and you’re hunkered down in your home.

Our firms has spent a lot of time researching coronavirus and COVID-19, and now, with confidence, we can tell you that we don’t know how this will play out. Nobody does. The virus may get contained relatively quickly, as has happened in both China and South Korea. Social distancing and lots of hand washing are key to slowing the spread of the virus.

My biggest hope is that capitalism will win — that pharmaceutical companies will find a cure or a vaccine for COVID-19. I’d bet on capitalism — our selfish perpetual engine with the power to do seemingly impossible things. Or the virus may get killed by sunlight and warmer weather — something that happens every year with the common flu.

The realist in me believes…

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