Different pandemics comes up at different levels, majority of the people who witnessed the great depression are not witnessing covid-19, those who are experiencing covid-19 might not be alive to experience the next pandemic, it seem every passing generation has to face a certain pandemic and most of us did not even know that there was a great depression until covid-19 came along and it opened our eyes to the previous pandemic history.
The health, economic and market impact of the coronavirus will be much greater than most people are now conveying.
Ray Dalio explained to us the relevance of saving, he is of the opinion that there is always going to be a pandemic and just like the way we are currently experiencing, there may not be any form of warning before it strikes, a good saving plan will help us maintain ourselves as we hopefully hold on to what follows suit, while describing saving he advised us to be debt cautious and he informed us about the availability of good and bad debt and according to him some debt that we acquire eventually turns out to be a form of saving pattern, if a debt is acquired to get an asset that will produce better income value then it is a good one but if it is a debt that is used for consumption then it is a bad debt according to Ray Dalio.
Speaking about investment in stock market, Dalio advised that if we want to succeed and get ready for the next pandemic the best thing is to invest in the stock market when every other person is trying to keep their money, he further described that act as an act of going against your instinct. Dalio however said this should however be done with caution as too much money that will make us uncomfortable should not be put into the investment system.
Pandemic causes disappointments to so many people, there might not be sufficient money to fix certain systems and this may make some set of people lose out, pensioners may not get what they have been promised and salaries will have to get reduced while others will be laid off just to stabilize the economy.
Lots of economists worldwide have predicted that the after result of coronavirus pandemic will lead to a global recession but Ray Dalio has gone further to tell us the after effect of the pandemic will be worse than the experience of the great depression.