What we’re seeing is unprecedented.  Humans crave physical touch and connection, yet we are urged to partake in social distancing.  The number of confirmed COVID-19 cases and death climbs daily.  International air travel is largely shut down and domestic air travel may be next.  Large scale events with 50 people or more are canceled.  In fact, it is highly suggested that we avoid gatherings of just 10 people.  

 

I’m scared just like you.

 

We don’t know what the future holds.  We do not know when or if our children can resume school.  Daycares may be open now but closed within a week.

 

Moving to virtual school sounds like a great solution … except when both parents work outside the home and work in essential industries.  In some cases, the only responsible adults to oversee young children are the same adults most susceptible to this virus – grandparents with preexisting health conditions.

 

Even if you successfully navigate working from home while caring for school-age children, how do you keep the kids entertained when they are no longer allowed to see friends in person? 

 

What happens when you or your spouses’ working hours are cut?  Or you lose your job?

 

What if the stock market continues to fall?  Market timing is nearly impossible because you must be right twice.  You have to know exactly when to sell and precisely when to get back into the market.  You may be right once, but twice is unlikely.

 

There are a lot of questions and very few answers.  Anyone who tells you they can perfectly predict the future is a liar.  We must fumble our way through this confusing maze of information and find a new normal.

 

Given the sheer number of unknowns, what do we know?

 

Here are four truths:

1.    You cannot control what happens, but you can control your reaction to new information.  

When you’re feeling stressed and anxious, engage in an activity that relaxes you.  Ideas abound for introverts: reading, taking a candlelit bubble bath, giving yourself a pedicure, praying, meditating, exercising, and journaling can all be done from the comfort of your home.  Extraverts may especially miss the social interaction, but friends and loved ones are still accessible by phone, text, or video.  

 

2.    Routines will help you keep your sanity.  

Before the first confirmed case of Coronavirus in the US, you likely had a schedule:

 

a.    Wake-up

b.    Exercise, shower, and eat breakfast

c.    Get kids ready for school

d.    Drop kids off at school

e.    Work and take a lunch break

f.     Pick up kids from school

g.    Cook dinner or eat out

h.    Start the bedtime routine

i.     Relax and wind down

 

You may be eating all meals from home and avoiding the school drop-offs and pick-ups, but you can still largely follow this routine.  You have to be more creative in crossing everything off the list and more flexible on the time of day that something is done, but you’ll prioritize things that are important and leave the nonessential stuff for another time. Now is the time to come closer together as a family.

 

3.    God is listening.  

He sees our pain and is the only one who can provide real comfort. Jesus has not turned his back on us and never will.  Although many of us cannot physically gather as a faith community, we can pray. Prayer is far more powerful than any virus.  And while you are spending more time at home, help your kids develop a better relationship with Jesus.  

 

4.    This time is different, and we still need to take a long-term approach.  

Think back to the last economic crisis in 2008.  It felt awful in the moment.  But as time marched on, it became more of a distant memory.  Dopamine kicked in and gave us confidence that everything would be alright.

 

We are in unchartered territory now, faced with a double whammy: both a physical and economic attack.  The flight or fight response you feel on days when the stock market goes down is REAL. Physiologically, the amygdala in our brain wants to do something about it.  Hearing “stay the course” or “remain calm” isn’t comforting.  About 80% of our financial decision-making is based on emotions, and the other small 20% portion is based on logic.  

 

It’s quite possible that this crisis will get worse before it gets better.  But that’s short-term thinking.  Let’s look five years out.  

 

Do you envision a vaccine to prevent the spread of coronavirus?

 

Do you see the stock market recovering?

 

If your answer is YES to both of the questions above, then what should we do about the crisis we are facing today?  

Even if it’s scary, I’d encourage you to seize the opportunities.  Long-term investors should look at rebalancing back to their preferred investment mix.  If there’s enough equity in the home and your credit score is good, investigate a refinance if you currently have a high fixed mortgage rate or interest-only ARM.  Federal student loan interest is temporarily forgiven, and you may be able to refinance private student loan debt.  

 

You can still build wealth during uncertain times.  And remember, money is only one form of wealth.

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