Coronavirus has the entire world in a frenzy. On top of the cancellation of music festivals and sporting events finding an alternative course of action carrying on games, the stock market took a plunge with Monday seeing some drastic losses.
The S$P 500, Dow and Nasdaq all recovered some of the loss from Monday, Yahoo! Finance reports but could it be sustainable? The futures on the S&P 500 had a surge up, but that came just a day after the largest one-day percentage decline in stocks since 2008.
Prior to the crisis hit the market, the first Wall street rapper, financial expert and entrepreneur, Ro$$ Mac, was educating the culture on how to maneuver in the market and set yourself up for wealth. Once he saw the rapid amount of cases begin to rise he made a proclamation online.
He would share the tweet on Instagram with the caption “I hope I’m wrong…” It turns out that hope is a far cry and his prediction rang true.
Recently Mac has continued to educate listeners with his Maconomics series of financial education and ahead of the release for his new video “A Dub,” he spoke with The Source to detail how coronavirus will continue to impact with the market and how you should plan your investments.
THE SOURCE: You tweeted the Coronavirus could lead to a Huge market correction, what did you mean by that?
Ro$$ Mac: At the time that I tweeted that, I had a feeling the coronavirus was going to be more serious than most people expected it to be. My feeling was that if there were more cases outside of China, and if it would spread to the US, investors would get scared. The stock market doesn’t like uncertainty. So I felt the stock market would correct, which means it would lose more than 10% of its value.
The coronavirus, of course, scared people in health but it is doing damage to the market, did you expect it to happen and how long could it last?
I definitely expected it to happen, and I put my money where my mouth is. I bought some puts on the S&P 500 and made a few racks on the way down. Right now the market is so volatile and going up and down every other day. So it’s hard to say how long this will last. People are scared and emotions are driving the market.
What is your advice for those who are maneuvering through the economic impact of the coronavirus?
On average, I urge everyone to be long term investors. Volatile times like now will be forgotten and stocks will rebound and continue to grow over time.
The market often fluctuates, do you have any advice for those who may want to enter the market when it heads back on the upswing?
The market definitely fluctuates a lot, but it ALWAYS goes higher over the long run. That’s the important thing I want people to understand. Warren Buffett always preaches about being a long term investor and that if you invested $10,000 in the S&P 500 in 1942, you’d have $51 million today. The market always goes back up!
You merge the worlds of rap and Wall Street. How did your interest in both start?
I look at both investing and rapping as 2 of the dopest art forms in the world. It’s an art to making your money make money. I bought my first stock when I was 18 in college after I saw this kid day-trading in class. I instantly had to get involved. And when I graduated from Wharton, I began working on Wall Street.
The music is just something that was always in the culture. I started rapping in high school. I made a few songs here and there but really started taking it more seriously later on.
With your expertise in this sector, you have leveraged a show called Maconomics with Revolt. How did this partnership happen and what do you hope to teach?
I really appreciate Revolt for helping me do something for the culture. It was all organic on how we connected. They have a great team over there and they were showing me love reposting my earlier videos. Then we were able to form more of an official partnership.
I hope to educate the world in an easily digestible way. I want to take all my experiences that I have learned and was taught and let the next generation know how to really get a Bag. Financial literacy is something that is normal in other cultures, and I want it to be the same way in ours.
Musically you just dropped the Maconomics album, what makes this project different from those before it?
This project was fun because I made the music with more intention. At the time I was recording songs, I was also just beginning my Maconomics episodes. So financial literacy really translated to the music. In my “Maconomics” segments, I intend to talk to everyday people with real problems. So that’s the same concept I did with the music. I’m bridging the gap between the streets and wall street with this project.
What is your aim musically as you continue through 2020?
2020 is all about growth and consistency. I plan to drop a gang more of music, both for the club and on some Maconomics vibes.
What’s a piece of financial advice you want to give the Hip-Hop community today?
The biggest advice is to INVEST. You’re losing money by not investing. Subscribe to Maconomics!