This is an URGENT message about the coronavirus and coronavirus risks.
Knowledge is power. That’s true in trading — and in life. That’s why I’ve been dedicating myself to learning all I can about the coronavirus.
I can be obsessive. That’s how I got involved in the stock market in the first place. First I educated myself on the market … Now, my passion is passing on what I’ve learned to others as a teacher and mentor.
I think education is one of the most important things in the world. In the stock market, it’s key to trading smart and safe…
And now, in the wake of the coronavirus, education could save lives.
I want to pass on what I’ve learned for the safety of our country and the world.
I want to talk about the pandemic that’s upended life as we know it … and how to stay safe. Read on to learn more about what’s going on in the stock market and the world, and what you can personally do to make things better.
If this post teaches you something … share it! The more educated we all are, the better we can fight this dangerous global threat.
How bad is it? It’s not good. It’s getting worse every day … exponentially.
It’s hard to keep up with the ever-mounting numbers and statistics. At the time of this writing, the virus is in at least 168 countries (out of 195, BTW). There are at least 515,022 cases globally and nearly 24,000 deaths.
Yes, the U.S. government and other governments have taken steps to contain the coronavirus. The problem? They weren’t fast enough or drastic enough.
This is a big problem. Too many people don’t take it seriously enough. For example, until March 22, Japan was still pretending the Olympics would go on as planned — then announced a delay … Now the Olympics are postponed for a year. We’ll see how that goes.
On a smaller scale, hundreds of thousands of people think that they can still take the family vacation they planned … that playdates for the kids are OK … or that it’s fine to meet up with friends at the park.
A lot of people don’t take things like this seriously until the numbers are huge…
BIG MISTAKE. You’ve got to take the coronavirus risk seriously RIGHT NOW.
It’s Not Just the Flu
Right now, more states and countries are announcing lockdowns. At the time of this writing, as many as one in four people across the world are under coronavirus restrictions.
States like California, New York, New Jersey, Illinois and more are under strict “stay at home” or “shelter in place” orders.
But a lot of people still think it’s a massive overreaction. “Come on … it’s just the flu,” they say.
They think it’s not a big deal because it only kills a small percentage of people infected — between 1%–5%, depending on the source.
That doesn’t sound like a big scary number to people: “It’s only the weak and old who will suffer … what does that have to do with me?”
Have some freaking compassion! If this post or this video I made saves one person, it’s worth my time:
It’s a huge problem that people have the wrong mindset.
Mindset is EVERYTHING. Right now, our global mindset is crucial. This toxic mindset is affecting the world right now.
Let’s look at some examples…
Some speculate that the Japanese virus figures were skewed low because the country wanted the Olympics to go on as planned.
West Virginia bragged about having no cases … Turns out people weren’t getting tested. The state didn’t want to taint its perfect record.
People who are worried about the numbers or business as usual have the WRONG mindset.
When I recorded a video the other day, I stated there were about 15–20K U.S. cases. Now, just a few days later, the figure is over 78K and mounting fast.
What will it take for people to get it?
Learn From the Past
I call myself a glorified history teacher … I constantly look to the past so that I can be smarter in the future.
In trading, I look at past price action on stock charts and to make smarter trading decisions in the future.
History repeats itself SO closely … That’s why I always tell my students to study the past.
It’s also why several of my students reported their best trading days EVER during the recent market crash* … They study the past and learn how to approach the market intelligently.
They don’t have access to some secret you don’t. It’s all about studying and being prepared. If you don’t have my “How to Make Millions” guide, it’s a great starting point.
And with the coronavirus, there are many historical lessons about pandemics that could be helpful today…
I’ve been warning about the coronavirus risks since January. I was accused of fearmongering.
I’m not here to say I told you so. But to those of you who say there’s never been anything like this … WRONG!
Lessons From Past Pandemics
Then in 1957, there was a big Asian flu panic … One million people died worldwide, over 100K in the U.S. alone.
The good news? Medical advances have come a LONG way. For instance, in the era of the 1918 pandemic, the most common treatments were things like “enemas, whiskey, and bloodletting.”
The bad news? We’re making some of the same mistakes again. We’re not considering the global impact of our actions and the importance of containing the virus.
This virus is killing people.
Most at risk are the elderly and those with compromised immune systems … But children and young adults are getting it, too.
But that’s not the biggest risk…
The biggest coronavirus risk is overwhelming the hospital system.
We’re HUGELY underprepared for what’s to come. Masks, ventilators, hospital gowns … We don’t have enough.
Companies like Ford, GM, and Tesla may start to make ventilators. But that will take time.
There’s also no vaccine. Plenty of companies are working on it, but there are still some problems:
- Even in the best-case scenario, a vaccine will take time.
- Viruses mutate. As an RNA virus, COVID-19 can mutate as much as hundreds of times faster than a DNA virus. So it’s not a matter of letting it flush through the system. It could get deadlier and ramp up.
It’s a race against time.
If the virus ramps up as some models propose, it’s possible that up to two-thirds of the U.S. population could get the virus.
That’s about 200 million people. Even if the mortality rate is on the low end of 1%, that’s still two million people who could die.
And we don’t have enough ventilators, hospital beds, or space in ICUs…
So if someone could be helped through treatment, it’s possible that they die. All because there’s no space or equipment available to treat them. This, in part, is why Italy’s death count is so high.
And what about the people who have other reasons to be in the hospital?
As it is, ICUs do a pretty good job of saving people. There are about four million admissions per year. About 87% of people who are admitted will live.
But according to estimates, without ICU beds, the amount would basically flip-flop, and about 80% could DIE. This means that millions more people could die because there’s not enough space, equipment, or personnel.
What Can We Do?
So what can we actually do?
First, accept that this is happening.
A lot of people are trying to maintain regular lives. But they could be spreading the virus without even knowing it.
Even if you aren’t scared of getting sick, think of everyone else you could potentially harm.
Think it’s fine to just go to work as usual? Think it’s fine to host a party? It’s not. Recognize the risk.
I know it’s hard for a lot of people. But remember: you’re not alone. The government is working on measures to collect unemployment. You can’t be evicted now.
As much as possible, try to avoid going out and potentially spreading this virus.
Social distancing and self-isolation might not be fun. But they can be an effective means of managing the virus. And you can make the most of this time…
Action You Can Take
It might seem like you’re stuck at home, but there’s probably more you can do than you realize.
For example, do you have extra masks? If you’re self-isolating, you don’t need them. Don’t hoard. Donate them to your local hospital!
New York City has about 10 days’ worth of supplies left as of this writing — 10 days! And that’s one of the biggest and most important cities in the world.
How to Avoid Risk and Stay Safe
As humans, we take some stupid risks. We figure the odds that something will go wrong are pretty low, and we bumble along. But when something does happen, it goes REALLY wrong. Consider the effect of the coronavirus on the stock market:
- The US stock markets are down about 35% in just a few weeks.
- The world markets are down 30%–35%.
Where’s the bottom? I don’t know. That partly depends on how well we manage the spread of the virus.
Why It’s Important to Be Prepared
Apparently, nobody saw these coronavirus risks coming. But they should have.
Bill Gates predicted a pandemic like this in a 2015 TED Talk: “If anything kills over 10 million people in the next few decades, it’s most likely to be a highly infectious virus.”
In 2018, the U.S. government disbanded its pandemic unit. Was it the best move to save money? Doesn’t feel that way right now.
We’ve unlocked so much potential damage … My hope is that we can minimize fatalities and learn from this.
People keep saying “we’re in this together.” But their actions don’t follow their words. Can we prioritize? Can we learn from our mistakes?
If you look back at several health scares, a TON of them had to do with poor treatment and handling of animals.
Could we treat animals better? Here’s what I think:
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⚠️WARNING: GRAPHIC CONTENT⚠️ People keep asking where this coronavirus came from — conspiracy theories aside, as far as the science goes, we’ve had a 90% match from a coronavirus carried by a pangolin, that mostly likely contacted this virus from a bat. How does this happen? Well, imagine a pangolin peacefully eating termites under a dead log (a practice that’s key to protecting our forests), where bats (which also help forests with insect control and dispersing seeds) are roosting, it then picks up the virus, and then comes along an illegal wildlife poacher who picks up the poor pangolin and puts it in a sack, then sends it off to the wild animal market. The pangolin, which is sadly the world’s most trafficked animal, is then killed by a market trader and in the process he or she gets a bit of pangolin blood in their eye. Fast forward to the present day where this zoonotic disease, a virus that spreads from animals to humans, is currently killing hundreds people by the day and spreading fast all around the world with no end in sight. WE MUST ALL REALIZE THAT TREATING ANIMALS BETTER IS THE KEY TO SAVING OUR OWN SPECIES AND THE PLANET TOO! It’s time to start respecting animals and the planet more before it’s too late and we destroy everyone and everything in the process. All these animals provide important ecosystem services for the planet, that helps sustain the web of life, that keeps us alive — please share this with your followers and tag people, celebrities and influencers who need a lesson in the circle of life during this worldwide crisis that is terrible, but which can also ultimately save us if we’re willing to learn the lessons its trying to teach us! Photos by the amazing @paulhiltonphoto #savethepangolins #savetheworld #coronavirus #endanimalcruelty #karmagawa
A post shared by Karmagawa (@karmagawa) on Mar 17, 2020 at 4:20pm PDT
When I trade and teach, I try to do it with a healthy sense of caution. I wish our government had that mentality.
Being prepared and learning from your mistakes can make all the difference … Our current global situation is a massive example of this at work.
Look for Opportunities
Despite the coronavirus risk and what’s happening in the stock market, there are ALWAYS opportunities.
Right now is no exception.
There are still stocks moving. Plenty of my students are reporting record profits.
My student Jack Kellogg made $23K in a single day* shorting Blue Apron Holdings, Inc. (NYSE: $APRN) and Waitr Holdings, Inc. (NASDAQ: $WTRH) …
Kyle Williams made $11K in a single day* on the same stocks…
[*These results are far from typical. These students have dedicated time to build their trading knowledge and hone exceptional skills. Most traders lose money. Always remember trading is risky … never risk more than you can afford.]
No, these aren’t common stories with the stock market crashing. But these students are prepared and taking advantage of opportunities they see … Not what they want the market to do.
Even if you don’t want to start trading now because you just lost your job and have no money, it doesn’t mean you can’t find opportunities. Take this time to LEARN so you can be prepared for opportunities when you are ready.
I also have a NO-COST weekly watchlist to help you understand the patterns that are moving stocks in the market right now.
Forget being bored. Learn a new skill. Do something. Use this as an opportunity to improve yourself.
I’m deeply committed to making the world a better place. Through work with my charity Karmagawa, I’ve built many schools. I’ve been to 120 different countries…
I’m really worried about what this virus could do to people all over the world.
But I still believe in people.
As stupid, flawed, and ignorant as we are … as much as we ignore the past … humans are still pretty incredible. I know we can do better.
I’m not here to say I told you so. I’m here to help remind people to learn from their mistakes and do better moving forward.
So what can we do now?
- Stay indoors. Social distancing and self-isolation might suck, but it’s better than the coronavirus spreading and killing more people. And wash your hands!
- Donate masks. Masks, medical equipment … If you have something that could help others, donate it. Save our hospitals from being overwhelmed.
- Prioritize education. Knowledge is power. Learn all you can about the coronavirus risk so you can stay safe and protect those you love. But don’t stop there …. Take this time to learn a new skill or become a better trader.
- Prioritize what matters. Right now, it’s not about money. I recognize that as a self-made millionaire, this might not fly with some people. But what’s the point of being rich if the world dies? Prioritize the world’s health and well being.
I know I’ve shared a lot of serious and scary coronavirus risks here. But I believe that honesty is vital. I pride myself on being fully transparent as a trader and as a human being.
Honestly? I hope I’m overreacting. If I’m fearmongering, that’s fine. That’s not the end of the world.
But if I’m right and this can help even one person … it’s worth it.
We can get through this, but we must be meticulous. Please share this post with anyone you think it might help. Thank you and be safe!
Leave a comment … How are you handling the coronavirus risk? Are you staying home?