To paraphrase a concept from the book “Animal Farm,” by George Orwell, published in 1945, “All investors are created equal, but the rich ones are more equal.” No, Wall Street is not a level playing field. However, not taking advantage of the increased wealth that equity investments potentially offer is like not showing up to collect a well-deserved Oscar. If you continually worry over short-term market or share price volatility, then please reconsider Wall Street. And yet the resulting number of cases facing Johnson & Johnson, 11,700, is well below that of other product liability cases, such as pelvic meshes, 37,400.Ĭommon sense says that companies with superior products and significant market share, combined with a finely honed distribution network, run by a seasoned management team, will see their share price increase over time, regardless of short-term market trends, good or bad. Johnson & Johnson found itself in a similar crisis regarding baby powder, with plaintiffs complaining the product resulted in their being diagnosed with cancer.
Nonetheless, trying to dissect every development and its effect on the future of a company, as we saw in the case of Boeing, is futile. Moreover, I do not minimize in any way the ramifications of devastation wrought on the victims. The prognosticators of Boeing’s doom resembled vultures ripping apart a carcass, in this case Boeing’s carcass.ĭisasters of any kind, especially one as widespread as a pandemic, are distressing at best. That does not mean we should let rational thinking dissolve into irrationality and panic.Ĭonsider the crash of an Ethiopian Airlines Boeing 737 Max, coming less than six months after the crash of a similar Boeing aircraft in Indonesia. There will be an impact on all aspects of our lives Wall Street will not be exempt. That is not to belittle the seriousness of the situation.
I am not going to rehash any one of the countless media stories describing the supposed horrors of the long and short-term effects of the coronavirus on corporations and subsequently their share prices other than to say I believe how dire the situation is has been overblown.
It is nearly impossible not to be overwhelmed by such a seeming never-ending stream of rhetoric. Investors are continually bombarded with conflicting statements about the future of stocks and the stock market.
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