I'm still buying shares through this coronavirus share market selloff. I invested in some more shares today, in-fact.
Think about it. How often are we going to see share prices fall so heavily? Very rarely I would imagine. Apart from December 2018, which wasn't as bad this, I'd say the GFC was the last time shares fell so heavily in such a short time. It hasn't even been a month since the global share market started selling off.
The central bank interest rate cuts weren't enough to stop the selling. Perhaps it was pointless to cut considering markets are continuing to fall, but now they have less ammo for the coming months. The focus is on governments to provide support for people and businesses that have been most affected by this.
Why I'm still investing
It's impossible to tell how much the market is going to fall. The ASX 200 (INDEXASX: XJO) is down around 20% since 21 February 2020. It's already fallen a significant amount of the eventual overall drop.
The economic fallout of the coronavirus would have to cause a GFC-like recession for shares to fall 50% or more.
Not every recession is going to be as bad as the GFC. That's why the GFC was seen as such a historic, global economic event.
Due to the fact that future share price movements are unknown, I believe that the best thing for my finances is just to keep investing through this volatility into the best opportunities I see.
I can't tell you what I invested in today due to Fool's trading rules, but last week I invested some money into small cap listed investment company (LIC) WAM Microcap Limited (ASX: WMI). I like the idea of taking a diversified, high-quality approach to this selloff whilst the economic effects are still unknown.
In five years the coronavirus will be fading into the history books like the Spanish Flu and GFC. I've always wished that I could go back in time and invest lots of capital during the GFC. This could be the once-in-a-generation opportunity that investors have been waiting for.
