Somber, Regardless.
Regardless of how risk assets start the new week, the mood is decidedly more somber than it was just seven days previous.
The warm glow of the upbeat May jobs report is gone, replaced by the smoldering remains of a charred Wendy's in Atlanta, and the white-hot state of race relations in America, where the reopening process is imperiled both by ongoing protests in major metropolitan areas and rising infection rates in some locales.
Meanwhile, a COVID outbreak linked to a major food and vegetabl
Well, right now there’s a 2% “discount” on those small cap Russell futs…go get’em Robinhood bros.
The correct term is either ‘Robbing Hoodies’ or ‘RobinHoodWinks’.
Call me crazy- I still believe earnings and cash flow from operations (not debt) are what really matter.
Both of those metrics will struggle for quite some time- from covid, too much debt, politics, higher taxes/more welfare, and less growth opportunities at home and abroad.
Yes, but in the absence of impressive earnings and cash flow what is the alternative?
The alternative is to wait in cash until you can purchase equities at a price that makes sense.
The alternative is declining – it does happen sometimes
The beauty of investing for yourself is you have no real benchmark, no real chance of being fired. The greatest advantage a private investor has is “time arbitrage”. Meaning you can hold cash when it is attractive to and invest when other are panicking. You don’t have to save your AUM or your job.
Empty nester is right. Buy when it is attractive don’t buy because of TINA. Maybe some can play the greater fool theory but most can’t over time.
But buying companies with sustainable competitive advantages, good bal sheets at good prices will win in the long run.
There are a few out there now, not too many given the rally, but private investors have a tremendous opportunity.
Cash does have option value. Anyone with cash in the March selloff was aware.
Be smart guys and use the advantage you have. It is very valuable. Good luck.
If I remember correctly, the Fed stopped (or rather slowed) balance sheet expansion about a month ago. The equities markets going up are a direct function of the money supply with a 1-2 month lag.