TSP Funds & Coronavirus

By Michael Bond on January 27, 2020

Update: The post below was written on 27 January 2020 while the mainstream media was ignoring the issue. I still standby my early assessment below on the virus and told you here to exit equities on the 27th.

Because I don’t want regular investors to get left holding the bag like they usually do. This is why I started my service in 2011. Here are the results of my email alerts to members. How much would you have saved?

BTW, it is a long way from over.

TSP advice for Coronavirus

As you will see, I am not going to give you the mainstream answer – I rarely do.

This Coronavirus is not another SARS and it is not the same as the flu. We can only hope it is like the annual flu, but I don’t think China would try to lock down 50 million people [expanded to over 700 million] , close businesses and schools down, and cancel holidays if they thought it was like the flu.

At least for the flu, many people get shots each year and the human species has some immune experience with it. Not this one. It is a whole new ball game. And it is a super-spreader.

The “confirmed” cases in China are growing at 50% a day – 50% a day!!! [new outbreaks in other countries testing are similar initially then settle down to doubling every 4 days].

This virus is explosive because it has a long incubation period and it appears to be infectious during this time. So remember those confirmed cases became infected 8-10 days ago and were out there spreading this virus. Those infected today will be confirmed in 10 days.

Some people show no symptoms which is great for them. But not for those who they are infecting.

There is a reason the President of China called this a “grave situation” and admitted the spread of the virus is “accelerating”.

My take is there is no way to contain this virus and it will spread globally and so we will have to deal with it. Hopefully, the death rate is low. But it will be economically disruptive at the least.

My free advice for the day – exit equities. All the king’s horses and all the Fed’s liquidity may not be able to stop a market correction.