We humans are an interesting species aren’t we? A couple of non-emotional observations with absolutely no intent to upset or offend anyone. Just hoping to inject some perspective.
1) Stock markets/S&P 500 are at levels not seen since 2016. Markets have another 15% to fall to retest 2016 lows (and they probably will test those lows this week)
2) The coronavirus pandemic is a serious event. The toll on the health of our fellow humans is immense and likely to get worse before it gets better...but it will get better folks in due course. We will rally together and regardless of political affiliation, medical science will prevail.
3) We have as a populace actually reacted in a very compassionate manner. Could it have been quicker, yes. More effective, yes. But I want us all to take a moment to realize what is happening. The world economy basically began a shutdown over the past 60 days. Figure about 40% of worldwide GDP would be a rough guesstimate. 4) To date, the unfortunate passing of 15,000 of our brethren is sobering and the number will grow and hopefully not exponentially.
5) Over that same 60 day time period however, almost 220,000 people have died worldwide in traffic accidents. Thats almost 3,700 per day, every day! Its likely possible with imposed shelter in place restrictions, that the net death rate (traffic deaths plus coronavirus deaths) will actually drop.
6) I am glad that humanity has chosen preservation of life over money and commerce BUT, and this is important, the funds expended/lost per life saved will be the most ever expended in any endeavor ever taken in human history.
7) The carnage is very real but with an almost worldwide shutdown of discretionary travel the reduction of carbon emissions will provide invaluable scientific data to global warming modeling. The kind of data politicians would have never allowed.
Now, on to audio:
1) Since these economic effects are unprecedented and will be prolonged, prices will fall. Simple economics.
2) Undercapitalized firms will fail
3) Brick and mortar dealers will be hard hit although they may be installing more home theater systems to offset
4) Used prices will eventually be attractive but not yet, its still too soon
5) Capitulation takes time
6) Like in all things, those who must sell will and those who don’t won’t. For instance, if I have some extra gear (which I presently do) I will either list it for sale or put it in a closet and wait for things to stabilize or I will sell it for what its worth and reinvest those dollars into something Ii can use
Finally, I have read a number of posts in a number of different threads about people talking about selling their investments and going to cash or worse, money markets. I am not an investment advisor but have we not learned anything over the years about asset allocation? Were you fully invested before this? Were you 75 years old with 100% in equities? Did we learn nothing in 2008? 2001? 1987? If you are panicked into selling right now, it will likely be to your detriment. I will be putting money selectively to work next week because like it or not, massive infrastructure spending and economic stimulus spending is coming and new highs in the indexes will happen as a result.
Its going to be ok eventually, buy audio to enjoy, not as an investment or a store of wealth. If losing money on a piece of gear hurts, you may be spending too much.
1) Stock markets/S&P 500 are at levels not seen since 2016. Markets have another 15% to fall to retest 2016 lows (and they probably will test those lows this week)
2) The coronavirus pandemic is a serious event. The toll on the health of our fellow humans is immense and likely to get worse before it gets better...but it will get better folks in due course. We will rally together and regardless of political affiliation, medical science will prevail.
3) We have as a populace actually reacted in a very compassionate manner. Could it have been quicker, yes. More effective, yes. But I want us all to take a moment to realize what is happening. The world economy basically began a shutdown over the past 60 days. Figure about 40% of worldwide GDP would be a rough guesstimate. 4) To date, the unfortunate passing of 15,000 of our brethren is sobering and the number will grow and hopefully not exponentially.
5) Over that same 60 day time period however, almost 220,000 people have died worldwide in traffic accidents. Thats almost 3,700 per day, every day! Its likely possible with imposed shelter in place restrictions, that the net death rate (traffic deaths plus coronavirus deaths) will actually drop.
6) I am glad that humanity has chosen preservation of life over money and commerce BUT, and this is important, the funds expended/lost per life saved will be the most ever expended in any endeavor ever taken in human history.
7) The carnage is very real but with an almost worldwide shutdown of discretionary travel the reduction of carbon emissions will provide invaluable scientific data to global warming modeling. The kind of data politicians would have never allowed.
Now, on to audio:
1) Since these economic effects are unprecedented and will be prolonged, prices will fall. Simple economics.
2) Undercapitalized firms will fail
3) Brick and mortar dealers will be hard hit although they may be installing more home theater systems to offset
4) Used prices will eventually be attractive but not yet, its still too soon
5) Capitulation takes time
6) Like in all things, those who must sell will and those who don’t won’t. For instance, if I have some extra gear (which I presently do) I will either list it for sale or put it in a closet and wait for things to stabilize or I will sell it for what its worth and reinvest those dollars into something Ii can use
Finally, I have read a number of posts in a number of different threads about people talking about selling their investments and going to cash or worse, money markets. I am not an investment advisor but have we not learned anything over the years about asset allocation? Were you fully invested before this? Were you 75 years old with 100% in equities? Did we learn nothing in 2008? 2001? 1987? If you are panicked into selling right now, it will likely be to your detriment. I will be putting money selectively to work next week because like it or not, massive infrastructure spending and economic stimulus spending is coming and new highs in the indexes will happen as a result.
Its going to be ok eventually, buy audio to enjoy, not as an investment or a store of wealth. If losing money on a piece of gear hurts, you may be spending too much.