Investing or not in 2020

This year has been a challenge for many.  The Pandemic has wreaked havoc on our economy and our stock market specifically again.  Rather any of the economic closures was necessary or even legal will be study for another generation because we know the truth will not come out in our lifetime.  The issue is now that it happened rather legal or even needed the economy has indeed been reduced by a massive amount.  The investments many of us have made have fallen 30% and are speculated to fall another 30 to 40% in the near future.  Now in economic downfall market research companies like the Intelligent Speculator are known for usually make a grand profit by shorting markets and trading well.  Alas, most of us are simply investing in 401ks and maybe some stocks and bonds on the side.  So what are our major plans if what we have has been reduced and what we may want to buy is going to go lower.

The first plan or possibly wise outcome is what I am actually going to do with my money.  That is simply to be cash heavy.  The market is so volatile that it doesn't seem wise to even be in it.  Just last week Warren Buffet made one of the boldest moves in financial history.  He sold all of his stock and holdings in American Airlines.  He told Berkshire Hathaway to do the same and they took a substantial loss in doing this.  So why would the world's almost best known trader take such a loss?  He believes the market has much further to fall. It could also mean that when it falls if he lost 20% he plans on purchasing those stocks back up at a much less amount in the future and gaining his money back.  Or he may think they are simply going to go under permanently and that he is better off investing in another area of the market. 

Another option is to believe that the market will go up and just hold off and leave my investments where they are.  Many are going to weather the storm.  Those that weather the storm during the 2008 market crash almost made their money back in 12 years and now that the market crashed again they are back to square one.  So I am not entirely sure this is the wisest place to be since the market keeps crashing.  If a true deleveraging of the economy is coming then holding funds may not be the wisest thing to do. I plan on personally l just holding on to cash and investing when the market falls further, if it does. 

As usual see your local broker, investment firm or attorney for all financial advice. I am just talking about the market as I see it.