Financial concerns with potential black swan coronavirus

i have been watching the markets take a dump as this coronavirus thing unfolds. Even if it suddenly disappears next month the damage to China’s economy will be real. This effect will spread to the rest of the world. I am getting more cash to keep on hand and making sure my other preps are as ready as possible. What kind of other stuff should I be doing? I was considering putting most of my 401k into more stable funds for the time being. Maybe make a purchase of some silver. What do you guys think?

 

Can't answer that question without knowing more AND I'm not asking.
Any way a secure location out of the cities and 1 year worth of supplies is a good start, that includes PMs that you already bought before the bug flew the coop and folding greens.

 

(first posted while on my bike using a tablet)

PMs have been going back up, so that train may have already left the station.
The KITCO silver 10 yer chart shows that $18/oz is $4 above a historical low of some time back.
It isn't a bad time to buy, if you understand both the range and that most commercial dealers now report you to the IRS so you 'can' pay Capital gain taxes (38%) on your "profits" from inflation/devaluation of the currency.
This is why I strongly suggest so-called junk silver (old US coins) - currently $1000 in face value sells for just over $13,000 today. This will weigh a considerable amount.

How about other kinds of "investments" -
Does your auto need tune up, oil change or new tires or breaks...now may be a good time to consider that ‘investment’. Other things related to home ownership may be a good bet - new roof, more insulation, new furnace, a wood stove...

Good luck.

 

Got the food situation down. Working on more stored water but have purification methods. We have a 20 property in the middle of nowhere and a 5th wheel but it is a pretty good drive away. With the extra fuel tank in the truck we could make it there and back on 1 tank. However, if it comes to it I am thinking bug in at least for the first couple months.

 

I am seeing a lot of chatter of China and Black Swans... I can only hope the dimwits at Moody’s et al don’t start a panic.

If you own a lot of stock, see if the company has issued a Force Majure statement on the China problem, this is a warning sign you should not ignore...

 

Be careful moving your 401k...depending on how and where you move it you could incur substantial losses from penalties and tac liabilities. I would recommend you consult your financial advisor first.

Having large sums of cash on hand also has drawbacks. Theft comes to mind immediately...not to mention "confiscation" from government entities that may come knocking at zero dark thirty because they got a tip (from an undisclosed source) that you are a drug dealer.

Acquiring goods that you will need in the future would be a good choice...after all, inflation is likely to continue regardless of what transpires with China and the general economic outlook.

 

I think if we started seeing larger clusters of infected people here in the US the panic selling will start.

 

Xi keeps China on high alert for 'black swan' events: Xinhua
3 Min Read
BEIJING (Reuters) - China must be on guard against “black swan” risks while fending off “gray rhino” events, President Xi Jinping said on Monday, adding that the economy faces deep and complicated changes, state news agency Xinhua reported.
Xi keeps China on high alert for 'black swan' events: Xinhua
FILE PHOTO: Chinese President Xi Jinping speaks during an event to commemorate the 40th anniversary of the "Message to Compatriots in Taiwan" at the Great Hall of the People in Beijing, China January 2, 2019. REUTERS/Mark Schiefelbein/Pool
A “black swan” event refers to an unforeseen occurrence that typically has extreme consequences, while a “gray rhino” is a highly obvious yet ignored threat.

Xi’s warning came after the release of data on Monday showed the economy posted the slowest growth in 28 years last year, hurt by faltering domestic demand and bruising U.S. tariffs.

Local governments and state organizations should find a balance between stabilizing growth and fending off risks, controlling the pace and intensity of such policies, Xi said in remarks during a meeting with provincial and department officials.

Sliding growth had pressured the government to roll out more stimulus to avert a sharper slowdown. The central bank has cut the reserve requirement ratio for banks five times in the past year.

Economic operations would be maintained within a reasonable range, Xi said, adding financing difficulties of small businesses will be resolved pragmatically while authorities would also step up support for companies to stabilize jobs.

Zombie firms - companies with a lot of debt - would be dissolved properly and resettlement of workers would be taken care of accordingly, Xi added.

China would implement long-term mechanisms that support the stable and healthy development of the property market, while making thorough evaluation of the potential impact on financial markets when drafting policies, according to Xi, who did not elaborate.

He emphasized that technology safety was an important part of national security and the country will accelerate legislation in artificial intelligence, gene editing, autonomous vehicles and drones.

Faced with complicated and difficult external environment, China would step up the protection of its overseas interests while making sure of the safety of major overseas projects and their personnel, Xi said.

Meng Wanzhou, the chief financial officer of Chinese telecommunication giant Huawei HWT.UL was arrested last month in Canada on a U.S. extradition request.

Western intelligence agencies have for years raised concerns about Huawei’s ties to China’s government and the possibility its equipment could be used for espionage.

Reporting by Stella Qiu, Yawen Chen and Beijing Monitoring Desk; Editing by Simon Cameron-Moore

 

Depending on your mix in your 401k .. Friday you may have experienced a 2-4 percent drop in it's value.
Moving it Monday you will lock in that loss. And if you put in your order to sell one, buy another first thing in the morning, depending on your plan, the trade may not happen until end of day. So if it goes down during the day … you've also locked in those losses as well.

It's a tough call on when to move your money. I've learned my lesson the hard way. I locked in a 10 percent loss twice in 2008. Not going to do that again.

 

95% of the problems comes from 5 or 10% of people freaking out.

 

@mysterymet

We bring home bills of 5,10,20,50 and 100s over the years , then purchase AU or AG in amount's of less than the reporting # is .
Called Stacking but it's always ongoing , as with preps. slow and steady quietly with no flash or flaunting.
Leaving a store with 8 jumbo cartons of TP raises questions , so I make a few trips to the van that I load 2 at a time as every one else is doing.
Sloth , dressed as a 2 , looks at all the fine ladies !!.

 

Japan is already down 1.5 percent.
Australia is down as well.
Wonder if Shanghai is just going to take the day off.

 

While it could happen, I see speculation as the largest threat to stock prices, not an actual event. With a DOW of 29000+, a few percent drop means a lot less than when the DOW was 15000. Moving money right now just does not feel right to me. My current 401k is high risk and I'm leaving it in, at least as long as Trump is in office.

 

Bought silver some here some there over a period of a few years when it was bouncing around $14 - $16 or so. Hanging on to it but not buying any more for the moment.

Leaving the 401k alone. It's already dipped on Friday but I'm going to stay the course. Pulled out of stocks in 2007 before the big haircut came. Got cold feet and didn't want to jump back in until around 2010. Began to get the toes wet and the flash-crash hit. Got skittish and pulled out. The markets then rose as 401k money sat sidelined. Not doing that again.

Always keep some cash on hand and available in case a great deal on a .338 Lapua or something comes along, but not in any huge amounts.

 

I agree with @Tempstar above.
Having cash on hand is a really nice feeling. I trust myself much more than I do any bank so I probably keep more on hand than many, but we're comfortable with that. Our IRA/401k type accounts are backed by PM. Gold /silver is good to have and I prefer to buy in person and with cash. @DKR was correct about junk silver as well. If you haven't you need to check into it.

I've not mentioned the basics of prepping here simply because you are a long time member and I figure you're well beyond that point.

 

BEIJING—China’s central bank announced plans Sunday to inject 1.2 trillion yuan ($173 billion)
into the economy to cushion the shock to financial markets from the outbreak of a new virus
when trading resumes on Monday after a prolonged Lunar New Year holiday.

The People’s Bank of China announced several measures over the weekend aimed
at stabilizing the economy as the impact of the virus spreads with cancelled flights,
stepped up quarantines and other controls.

Beijing extended the usual week-long holiday by three days but markets are due to reopen Monday
and many expect they will drop sharply.
Elsewhere in the region. worries over the potential harm to businesses
and trade from the outbreak have triggered wide swings in share prices.

AP via Marketwatch

 

Should you have some cash on hand? Yes, it's always nice to have some cash for emergencies! Should you buy silver and/or gold? Yes, and not as an investment but as a hedge against the future. I have some silver that I would not sell it if it went to $100 per ounce, as I would be paid in paper money! As for tapping into your 401K or selling stocks...only you can make that decision

 

piss ya off ?