Like many people, I went shopping at my local supermarket the other day. I went early to avoid the crowds. But despite my efforts, it didn’t work. I got there 10 minutes after the open and the parking lot was jammed.
The usual things were missing — staples like toilet paper, paper towels and sanitizer. And weird things were missing — like potatoes and coffee creamer.
But the really weird thing was seeing this guy in the checkout line …
His hazmat gear is somewhat jerry-rigged, but obviously this gentleman is panicked about catching COVID-19.
Sure, there were plenty of people wearing masks at the store. If you’re in one of the “at-risk” categories — and my wife is — that’s perfectly understandable.
But I’m going to go out on a limb and say a hazmat suit is overkill.
Heck, I wrote a book about preparing for any emergency, “The Ultimate Suburban Survivalist Guide,” and even I’m not wearing a hazmat suit. I have masks, though. I already owned them. Because I prepare for any foreseeable emergency.
Let me give it to you straight— now is not the time to panic.
Heck, it’s never the right time to panic. That’s how you make foolish mistakes.
But it is ok to naturally feel a little scared. Sometimes, a little fear can be a good kick in the pants. It means you’re taking this seriously.
So, while you shouldn’t panic, you should plan. Precautions to help mitigate your risk, both physical and financial, are called for.
Well, just take a look at what some say is the worst-case scenario: Italy. The number of known infections keeps rising, and hospitals have to decide who get access to scarce medical equipment and who doesn’t.
In other words, doctors are forced to choose who lives, and who dies. All because hospitals are so overwhelmed, they don’t have enough respirators and beds for every critical patient.
Shifting focus to the U.S., I don’t think the Federal government was worried enough in the beginning of all this. I’m glad they’re taking it seriously now, though.
Will it be enough? Probably not.
Planning for Panic in the Market
That’s why, I believe, nearly every White House pandemic press conference is greeted by more selling on Wall Street.
I believe we’re in a bear market now. I told you why on Saturday. Did you follow my recommendation in that issue, to use rallies to right your portfolio? If you didn’t, I have more profitable ideas for you today.
You know what they say, “there’s always a bull market somewhere”. When the dust settles, there are stocks that should rise.
Why? Because they’re leveraged to the fight against the virus. And COVID-19 will be with us for a long time to come. This fight has barely begun.
Idea No. 1: Gilead
Gilead Sciences (Nasdaq: GILD) might be the single best pure play right now, as the company’s antiviral drug Remdesivir may be effective against the coronavirus. The drug has been rushed to China for clinical trials. (Results are expected in April.) Remdesivir has already shown promise against MERS and SARS, coronaviruses structurally similar to COVID-19.
The latest news to boost the stock was a comment by the CDC director saying Remdesivir was now available via “compassionate use” to patients in Washington state.
Basically, this means that, while the drug hasn’t been fully approved yet, the potential benefit to trying it in extreme cases where nothing else has helped outweighs the risk.
But even if there had never been a coronavirus outbreak, Gilead still would be a viable value play. It has 25 marketed products in the United States. It’s also relatively cheap, recently trading at $79.42, and it yields a respectable 3.7% in dividends.
I recommended it in my monthly newsletter, Wealth Megatrends, last month as the virus began to rear its ugly head. Now, I’m certain it’s a solid pick.
Quick side note: This is a tough time to navigate the markets alone. Wealth Megatrends is here to help with specific Buy/Sell recommendations and Flash Alerts so you can make the moves necessary to keep your portfolio healthy as soon as possible.
If you haven’t yet, check out my Wealth Megatrends service here.
Idea No. 2: Cocrystal
Cocrystal Pharma (Nasdaq: COCP) is a clinical stage biotech company. It is developing treatments for both Norovirus (common on cruise ships) and Coronavirus infections.
Idea No. 3: Regeneron
The U.S. Department of Health and Human Services (HHS) and Regeneron Pharmaceuticals (Nasdaq: REGN) are jointly focused on research, development and manufacturing of a portfolio of antibodies targeting pathogens posing significant risk to public health … including influenza and COVID-19.
This effort uses Regeneron’s VelociSuite® technologies in order to swift identify and develop promising antibody candidates.
VelociSuite® is particularly well-suited for use in fast-developing outbreaks like COVID-19 … and the 2019 Ebola outbreak.
Do you have to buy these stocks now? No! You shouldn’t panic buy, just as you shouldn’t panic sell. Pick your entry points. Wait for the market to calm down. The opportunities will come.
Now is not the time to panic. Now is the time to plan your next wave of profits.
All the best,