Take the Power Back

It's stunning how quickly everything in the world is moving due to coronavirus:

• Like many organizations, my company has suspended some operations to prevent large social gatherings.
• My wife's business has seen cancellations out of fear.
• Stock markets feel like they're properly crashing. Unlike 2018 or 2016, the S&P 500 is well below the 200-week moving average. That alone makes this look like 2008 or 2001.
• Not to mention, there's the giant oil price blowup.

I took steps weeks ago to manage my risk. I sold my lowest conviction positions, and I extinguished all my margin debt. I'm fully invested (not including our emergency fund) and don't plan on making any adjustments to my existing portfolio. I've made my bed, so now it's time to sleep in it. When I get paid, I'll continue purchasing assets and setting aside cash for our cash buffer.

But more importantly, we're having to face the very real real-life possibility that we and/or many people we love will get ill and, possibly, die. I believe it's important to simply be honest about this and begin to adjust to the reality.

I have two parents over 70. I also have two grandmothers. My sibling in the US is in a densely populated city with rising numbers of infected. My company has around 500 employees working in close contact with one another, and some are definitely high risk. My city is one of the largest in Germany, and cases are increasing here.

It's funny going to the supermarkets here and seeing sold out soy milk or pasta or toilet paper. All those purchases were made out of an attempt to prepare, as if hand sanitizer or toilet paper meant you could control the outcome. Yes, yes, wash your hands, and stop touching your face. This has long been a good standard practice, so even after coronavirus, you should keep this up.

But the preparation must be more in your mind and less in your pantry. We must think through what reality might look like in the coming weeks and months for us. Only then can we make rational choices.

You might have some risks that you need to deal with. Some social distancing is wise. Some financial risks carry "blow up" potential, so deal with them as rationally as possible and move on. However, try to avoid waving your hands and justifying poor choices -- such as selling out of all equities after a big drawdown -- out of fear. We are awfully good at justifying poor behavior, so try and resist it.

And this needn't be a dark process. I've been actively reminding myself of what I enjoy. I enjoy reading. I enjoy music. I enjoy playing guitar and taking pictures. I enjoy exercising. I love my wife. I love my family. These are all things I can have more of if I choose to.

Just as you can. Take whatever power you have and use it to love your life.