26/02/2020
What up my party people! Today is PART ONE of my most important posts in a wizzle!
My Stocks and Shares have DROPPPPPPPPPPED 5.14% which means I’ve lost 1.5k !
Usually you’d hear me say “ I don’t give a foooooooook!” and leave it at that.
However today I would like to try and come across a little intellectual, a little more “balanced” perhaps.
So both the FTSE and the DOW have dropped significantly in the last two days, mainly driven by more coronavirus cases being found all over the gaff.
I am no financial expert, I have no financial institutional experience (more on this later) and I definitely did not study at LSE!
But I am going to put my neck on the line and say in 3 months time after April my stocks and shares profile will have recovered from this minus 5.14%.
I want to try to explain to myself why what is happening in the “markets” is happening and I shall break it down into 3 parts.
PART ONE
Companies and CEOs – If you give them a reason to downgrade their earning forecasts which does not implicate them ——– THEY WILL
Imagine you were me last year. A pharmacist, putting the delivery of medicines away and for some unknown reason you receive no gastro resistant aspirin.
Not some complicated drug that is really hard to get hold of…… bloody Aspirin!
You ring the supplier and ask “ where the aspirin at?” (The Wood reference – a hilarious film that my brother showed me)
Guess what the suppliers say? “Out of stock with no expected date of return”, nothing more and nothing less.
Fast forward, you now are staring at a patient in directly in the face and he/she is asking you, “where’s the aspirin (one the most popular drugs in the world) in my prescription?”
You stare aimlessly at this patient telling yourself that it’s important to be transparent and honest. “Abhi you’re just going to have to say that the suppliers are out of stock and say there is no expected date of return”.
You take a deep breath, mentally accepting that being a pharmacy without aspirin could be one of the stupidest things you could ever admit to in your career and just before you can utter a word the patient says to you “is it because of brexit?”
Every part of your brain wants to say no and give your nonsensical (but honest) reason but instead you just nod your head and make that face that shows you care but unfortunately it’s’ Brexits’ fault. Even though I have not been honest, the patient leaves blaming Brexit for not getting their medication,,,,,,,NOT ME!!
This is no fucking different to what big players like apple and microsoft are saying today,
“Hey guys just want to warn you not going to achieve our forecasted revenue because guess what …………………………. CoronaVIRUSSSSS!!!!!!!”
Now I don’t want to minimise the damage and harm the coronavirus has caused to those who have passed away or have been harmed from the virus , but don’t get it twisted that’s exactly what these guys will do.
Why publicly stop disclosing how many physical I-phones you are selling and admit that people ain’t buying as many I-phones as they once did, when you can just say CORONAVIRUSSSSSSSSSSS!
Everyone will just shrug their shoulders and accept that it’s not Tim Cook’s and his executives fault, can’t blame them for underachieving or not hitting their numbers (that they knew they were never going to hit in the first place) because no one saw this coronavirus coming.
So when it presents itself to the world, all these companies saw a “present” (see what I did there!) and use it as the NUMBER 1 excuse for underperformance and guess what no one will say a thing.
Why?
Because no one understands how any of these companies work, let alone how the coronavirus has a genuine effect on any of these businesses.
So I hear you saying these exact words.
“Abhi you’ve given me an example of how maybe Apple or Microsoft are using the coronavirus as a device to manage the expectations of their shareholders, so I could understand why shares of those particular companies might dip or go down. But why would the WHOLE market dip? There are so many companies all from different sectors that make up the stock market surely they ALLL can’t be affected by this coronavirus ting, explain this to me you prick”.
Don’t worry I got you.
I will explain why the whole market dips tomorrow……….. IN PART TWO!
See y’all tomorrow