The spread of the virus could significantly increase as the economy restarts, and the restart could be delayed. The market wouldn't like that. Everything could go great and then the virus could reignite in the fall, prompting another at least partial shutdown.
I hope those things don't happen. And I don't mean to be negative or gloomy. It is very possible that the market never looks back. I just want to emphasize that many risks remain in this market despite the rally. And I stand by my strategy of targeting great stocks at cheap prices in the event of another steep decline in the market.
To be clear, I don't doubt the economic recovery. I believe we will overcome this and the economy and the market will come back strong. I'm just saying that it might be prudent to prepare for some turbulence along the way.
Due to the elevated level of risk to the market after a 40%-plus rally, I am only very selectively buying into the market at current levels. The few portfolio positions that are BUY rated are ones that are only minimally affected by the virus economy, still cheaply priced, which should thrive in the post-virus market as well.
"The New Normal will come with Many Investment Opportunities."
Título : Small Cap Stocks to Invest During Coronavirus Recovery
EAN : 9798227098825
Editorial : bryanandrobert
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