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The Great Covid19 Crisis

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This crisis will be in history books all around the world. When calamity strikes, markets fear the worst and stocks are punished. Historically, when the dust clears, optimism returns and prices bounce back to where they were, with markets responding to fundamental signals rather than to perceived turmoil. 28 global crises over the past hundred years, from the German invasion of France in World War II to terrorist attacks such as that on 9/11. Each time, markets overreacted and fell too far only to recover shortly thereafter. Investors who sold on the fear found themselves having to buy back their portfolios at higher prices, while patient investors were rewarded. Another way to make money on a crisis is to bet that one will happen. Those with the foresight that a crisis is impending may implement short strategies to profit from a falling market.