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  • James Veal

Don't be fooled! This coronavirus pandemic will make the Rich Richer.

Updated: Jun 17, 2020

The stock market has been riding on a ten-to-eleven year Bull Market. This is very unusual! You may have noticed that the value of your employer's 401(k) or 403(b) plan has been increasing the past 10 years in most cases. Again, that is more likely attributed from the efforts of the stock market and low interest rates.

A Bull Market or Bear Market does not normally maintain any kind of momentum or direction (up or down) forever. There will be times when the stock market is up one or a number of years and down one or a number of years, as well. But this has not been the case the past ten years in this period of stock market activity.

However, one day this thing has got to come to a STOP! Something has gotta slow this train down somehow. But what can it be? What could or would make the stock market take another direction? Let's see. A war? Economic turmoil? A disease? Hmmmmmmm!

How do investors and the rich get richer when buying stocks? That's right, you buy low and sell high. I use to always say, "Catastrophes Creates Opportunities."

Well, this is an absolutely unfortunate catastrophe that has taken lives and have crippled people and the entire country, financially.

If you remembered back in 1987, 2001, and 2008, these were stock market crashes caused by a slowed economic growth projection, an internet bubble burst, and a housing bubble burst, respectively. I can only imagine what a stock portfolio would look like now if we invested and kept most of the stock purchases in those times.

A funny thing here is that this recent financial chaos was not caused by an economic market issue, this crash is a health related issue caused by the coronavirus. As of February 12, 2020, the Dow Jones had just posted its highest record to date of 29,551.42. When the coronavirus hit the United States, then that's when all hell broke lose and we spiraled quickly into financial turmoil. That was terrible for most Americans but opportunities for the Rich.

Rich people and those who understand stock market opportunities that more money and more millionaires are made when a major catastrophe - in this case the coronavirus - happens. This virus has caused many layoffs, corporate disasters, and pandemic that has nearly shut down the country. It is a perfect opportunity to buy things at a much cheaper price, like stocks.

In conclusion, the Rich will become Richer and most other's will miss out and continue to struggle. Unfortunately, they don't understand basic investing strategies and what the Rich know - Catastrophes Creates Opportunities. Let's follow their strategy in these days of the coronavirus pandemic and see what just may happen.

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