Amid Coronavirus Uncertainty, Should You Buy or Resist?

Amid Coronavirus Uncertainty, Should You Buy or Resist?

Economist Mohamed El-Erian says, "We should resist any inclination to buy the dip.". Ron Gross: I'm good, Mac.. I think as long-term investors, we have to understand that there are going to be situations like this.. And the situations come in -- interest rates rise, they fall, they drop, viruses come out and they spread; this is a very serious situation.. So investors have to make sure that their portfolios are set up to handle situations like this in the short term.. China has become such an essential part of the global supply chain that this will reverberate around the global economy, obviously.. As Andy said, Apple, Starbucks, Walmart will be impacted, lots of stores over in China.. We're coming off a very good time in the markets, and the stocks have been now historically selling at a richer multiple.. It can lead us to make bad decisions, decisions that are much more short term-focused.. Cross: I think what's really critical is understand your holding time period and that if you're going to be an investor who's holding these businesses for three, five years, you can take that approach.. If you're a little bit more short-term, this is one reason