So, you bought your investment-grade bond in 2016 when bonds were going for cheap … say at 100. You planned to sell at 115 and make a tidy capital gain of 15 per cent (NB: if you bought 200,000 face value of the bond, this would translate to $30,000 gain). You are on your way to your desirable mark in January 2020 things are looking good! Your bond price just hit 114 …
And then … that darned pandemic!
Your bond drops to 96 and you are in a panic! Should you sell before things get worse? What if there is a default? Are you going to lose all your money? And the questions keep coming.
Except for the Spanish flu in 1918, no war, no plague, no flu comes close to what the world is facing today with COVID-19.
http://www.jamaicaobserver.com/sunday-finance/that-darned-pandemic-_194270
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