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Corona Panic
Morgan Housel’s post on The Corona Panic had some god insights. The one that stood out:
This is the first global crisis in the social media age. What we’ve learned from social media in the last decade is that 1) information spreads fast, 2) false information spreads fastest because it’s more sensational, and 3) tribal identities are heightened when debates take place online vs. in person, so healthy debate quickly descends to a my-team-versus-yours battle. FDR said, “The only thing we have to fear is fear itself,” in an era when the only information source was a morning newspaper, edited and fact-checked by professionals, written by journalists who weren’t motivated by likes, retweets, or paid per click.
As I mentioned yesterday, price moves faster than mood and psychology. With social media there does seem to be some sort of delay even though information spreads faster. It’s likely just the sheer volume and the fact that there are so many trusted experts that get to chime into the conversation. But when the prices do move, they seem to move quicker than the pre social media era.
If you were panicked all weekend, yesterday and today are much better moments to adjust your portfolio.
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