I will be buying SHOP, TWLO, and OKTA. I get the idea of going with safer names like FB, AAPL, MSFT, and GOOG who have hoards it cash. Iâm looking at how quickly China rebounded, and we are throwing a crazy amount of stimulus at a short-term issue.
Itâll take awhile to unwind all of that stimulus to a normal level. The fed has already proven over and over they are unwilling to shock the market with unexpected moves to remove stimulus or raise rates. They wonât make those moves until they are fully priced into the market.
Iâm still worried about oil being so cheap. It rebounded big yesterday but is still historically cheap. I donât see that changing with so much air travel grounded, and people not commuting to work.
I think holding over the weekend is risky. Thereâs a much bigger chance of highly negative news thatâll cause a massive drop Monday vs news thatâll cause a big increase. The risk/reward ratio is bad. Itâs also monthly options expiration, so lots of movement as people close positions.
Yesterday, a friend of mine insisted to meet me for lunch. I accepted his invitation. Lot of people who hold strong left view generally like talking to me because they see me as window to what is thinking deep on the other side of fence, and I do not try to be diplomatic. After few pleasantries the conversation drifted and he wanted a comment on how Trump will save his presidency given how corona-virus issue is handled by him. I thought that was a strange topic to invite someone for lunch. He has helped me a lot at my work and he is a good person. I will still not be able to refuse his invite. So, look at stock market and general news from that angle. Technically stock market is sum total of earning and risk. So, news are fair game because they may cause either earning or risk to increase or decrease. But, overplaying ones hand is a double edge sword because it can work against those who do. I ended the conversation with the idea that it will all depend upon Trumps ability to glue his voters together to him, and ability of leaders on the left to close the differences that they have in their side and unite various factions to act as one strong voting block willing to come out and vote.
I am debating whether if it is worth to sell the index and buy those instead. I donât believe that upswing (whenever it come) wonât be equal across index, so taking some risk on those companies with strong cash position and potential upside. Following @Jil, THIS IS NOT INVESTMENT ADVICE, JUST SOMETHING ON TOP OF MY MIND.
I think this is a good observation. Which sectors will recover the fast. Hospitality and Travel will under lot of debt. Then it comes back to tech because they are 25% of SP500. Financials are about 15%. Health care is a big percent too.
Out of those 5 Apple seems to have held up the best. The others put in 52 week lows this week. At the end of today, Apple broke below itâs most recent lows while the others didnât. The other ones might hold up better on the bad days at this point?
As expected, people like warren buffet DCAs during the dip. Here is his DVA buy yesterday. Since he owns more than 10%, he is forced to show in SEC filing within 2 days of his purchase.