good morning everyone!
1. I hope everyone is staying home and staying safe!
2. I hope none of you got too damaged in the stock market.
3. i really hope none lose their jobs long term.
I have lived through the crash of 1987, 2000, and 2008.
My opinion, and it is JUST an opinion, is that the market was due for a retreat, since 2008 to now was a super bull market. added to this is the terrible virus, and oil price collapse, man made by Saudi and Russia. i myself have been looking for a market crash for 2 years, and was 95% in cash in the bank.
Now, monthly, I am buying stocks in DIFFERENT sectors. Monthly means I do not put all the money in now, and I CANNOT predict the bottom of the market crash. no one can. I do not put it all in oil stocks, Home depot, Visa, etc. I predict at some point the market will reach a pretty good bottom, and I will keep buying as long as values do not get too high. I do NOT NOT put money in that I cannot afford to lose.
from Peter Lynch: good value is when the earnings growth is higher than the P/E of the stock. If Visa is growing at 22% per year, and a P/E of 10, that is good value. I just made those numbers up.
to my mind, we are looking at a GENERAL stock market crash, and a big SECTOR crash in the oil companies.
my opinion: do NOT put any money in the stock market you cannot afford to lose.
only buy the best, best safest companies when their growth rate is at or above the P/E. companies that have tons of cash and a necessary product.
After the 2008 crash, Berkshire Hathaway, (warren buffet) bought the entire Burlington norther santa fe railroad. at a bargain price. smart guy.
I myself think there MIGHT be a lot more pain ahead. there is risk in the market.
will the Dow fall from 20,000 to 10,000????
what if the body bags are in the street of new york city?
my opinion: at some point, this virus will be conquered. at some point, the price of oil will not stay so low. at some point, people will go back to work. when? i do not know.
these are only my opinions, and I am not bragging or commanding in any way.
i would love to hear your ideas.
stay home and stay safe.
best regards,
Bob