“This time is different”. Famed investor Sir John Templeton 1912-2008 is quoted as saying these words are the most expensive in the English language.

Of course, we know that every time is different. The variables are never the same. The reasons are never the same. What Sir Templeton was referring to is that there is always a recovery. That does not change. That is not different.

Eventually the coronavirus will run its course. When, no one knows. But when it ends the recovery will begin. Capitalism will begin its work. Some businesses will disappear while others will emerge. While some see disaster others will see opportunity.

Another quote from Sir John Templeton and there are many, is “Do Not Panic”. Do not sell out of your equity positions. Unless of course, you are a gambler/speculator then that is what you do. If you are an investor you will not panic.

In fact, you will rebalance to your target allocation. In this case it will mean selling fixed income and buying equities. You are automatically buying low and selling high.

Discipline Wins!