- News of China commencing mass city lockdowns,
- people collapsing on streets,
- nurses having meltdowns on their social media
- citizens risking being caught by the police urging for worldwide pressure on the Chinese government
I wrote previously that you must always have a buy rule and a sell rule when you invest.
Sometimes, as an investor, even if you do everything right, the world can punish you by throwing an unforeseeable disaster in the way of your stock market holdings.
This is called Systematic Risk – or basically an unpredictable, unforeseeable risk that affects whole segments of the market and cannot be controlled for.
A friend of mine from school days asked me what could destroy my investment thesis in shipping. I told him maybe a natural disaster that destroyed the company’s fleet, global war, or a major financial meltdown.
I was wrong.
It was the Wuhan Coronavirus.
The Wuhan Corona Virus hit mainstream media with strength approximately around the start of the Chinese New Year.