"Bulls make money, Bears make money, but Pigs get slaughtered".
One of our greatest concerns is the health of those dear to us. Because of this, the outbreak of an infection that could potentially harm those close to us is very important and one worth covering by our media. So, when the World Health Organization (WHO) raises its pandemic alert level to Phase 5 out of 6, which is defined as a "signal that a pandemic is imminent", we listen. When 300 schools in our country close for precautionary measures, we listen. When the Mexican Government orders a multi-day shutdown of all non-essential activities in the government and private sector, close to an entire shutdown of their economy, we listen. When our own Centers for Disease Control and Prevention (CDC) publically express serious concern about the flu outbreak, we listen. For each of us, we should listen and take the precautions suggested.
What about our money, should we elevate our alert level? Should we believe that this flu could cost the world's economy, according to the World Bank's estimate, some $3 Trillion? Should we believe those bloggers and investment newsletter writers seeking recognition and your money? My answer to you, my friends, is not yet.
As an intelligent investor we must first and foremost seek out the facts. So let's take a minute to do that. According to the WHO, as of May 4 there have officially been 985 cases of the swine flu infection verified worldwide. Mexico led the way with 590 cases, followed by the United States with 226 cases, and next Canada with 85 reported cases. Spain ranked next highest with 40 cases followed by the United Kingdom with 15 , Germany with 8, New Zealand with 4 and the rest of the countries reporting only a few. Of these total, officially reported cases, 26 people have died.
Is this a pandemic? Let's look at what happens in a normal year? According to CDC, the normal flu infects between 15 and 60 million Americans every year. Of these millions, approximately 200,000 are hospitalized. The "normal flu" is the cause of about 36,000 US deaths every year. Will the "swine flu" have a greater impact than the "normal flu"? Time will give us the answer, however, for those of you who are using the news and not the facts to make an investment decision, well, all I will say is, "Pigs get slaughtered".
Anderson Griggs & Company, Inc., doing business as Anderson Griggs Portfolio Management is a registered investment adviser with the US Securities & Exchange Commission. Pursuant to laws and regulations Anderson Griggs also maintains notice filing with several individuals state regulators including North and South Carolina. Anderson Griggs only conducts business in states and locations where it is properly registered or meets state requirements for advisors. This commentary is for information purposes only and is not an offer of investment advice. We will only render advice after we deliver our Form ADV Part II to a client in an authorized jurisdiction and receive a properly executed investment Management Agreement. Any reference to performance is historical in nature and no assumption about future performance should be made based on the past performance of any Anderson Griggs Investment Objective, individual account, or index. The authors of publication are expressing general opinions and commentary. They are not attempting to provide legal, accounting, or specific advice to any individual concerning their personal situation. Anderson Griggs Portfolio Management's office is located at 113 E. Main St., Suite 310, Rock Hill, SC 29730. The local phone number is 803-324-5044 and nationally can be reached via its toll-free number 800-254-0874.