The Coronavirus pandemic named COVID-19 sweeping the world since the start of 2020 is affecting us all in many new ways … unprecedented in our lifetimes – at least for most of us. We’ve had pandemics before such as Spanish Flu in 1918 which infected approximately 500 million people – 25% of the world’s population at that time. And many lives were lost to these viruses.

We’ve also had the Great Depression which started in 1929 and lasted until the late 30’s. A tragic time financially for most. Along with the regular “boom and bust” cycles, we also see financial markets regularly affected by many “shocks’” that have occurred throughout history. Such as the 1987 Share-market Crash, several virus scares with HIV/AIDS and SARS to name a few, the 911 atrocity, the Global Financial Crisis of 2008 and now COVID-19.

Today, in many countries, including my native country of New Zealand, we are experiencing anxiety and fear under ‘soft’ martial law. For the first time, we are being forced to ‘lock-down’ – confined to our homes and apartments. Most businesses and commerce closed, and severe economic damage is ensuing as our leaders struggle to eradicate a virus that has killed a smallish percentage of the population so far… actually less than seasonal flu’… but has the potential to overwhelm healthcare systems and many more could die as a result.

Borders are mostly closed, airlines and cruise lines struggle for existence, tourism businesses decimated for years ahead, hospitality businesses suffering and severely damaged, and many jobs have been lost already, or incomes slashed. Most folks are worried about their futures.

At the time of writing this blog, it would appear, for several nations, including NZ, the infection peak may have been reached or close to it.

Talk and concern now is around HOW to manage a successful exit from lockdown in a staged manner so as to not only re-start an ailing stalled economy but also to guard against a second wave of the virus.

Since the 1960’s, I have personally lived through many global ‘shocks’ excluding War but including numerous virus outbreaks. In fact, I started my financial career weeks after the 1987 share market crash and yes, it was tough. Seeing first-hand the financial damage and shattered lives was a tough lesson that was heart-breaking, and that experience was the genesis of the Smart Money Method.

However, ONE thing is certain! We always come out the other side and the sun comes out again! It happens 100% of the time!

For the first time in my lifetime, the response by Government’s, Federal Banks, and the Banking and Insurance industries has been surprising in that it’s a unified one. The will is there to assist both the middle and poorer classes who will be financially affected, possibly devastated, by this virus and its flow on effects. In most nations, although with notable large exceptions, most politicking has been put to one side as we “are all in this together”.

I trust you’ve acted on the advice in the Smart Money Method, so you’ll be in a better financial position than many. You should have zero debt, streamlined banking, a sound budget, and, most importantly right now, a rainy day with 4 months total income saved. If so, the prep work and sacrifice before will pay off now and you’ll be well placed to ride this ‘perfect storm’ out the other side in one piece. Because guess what folks, it’s now raining!

For how long this storm will last remains anyone’s guess but I suspect it could be two or more years before we see a growth economy again.

But just remember this sage advice: THIS TOO SHALL PASS!

God bless you all.