“bear markets don’t bottom with optimism, they end with despair.”
“With all of our signals now triggered from fairly high levels, it suggests the current selloff is not over as of yet. In other words, we will see a rally, followed by a secondary failure to lower lows, before the ultimate bottom is put in.”
(above from realinvestmentadice.com LINK)
March 23, 2020. We are hearing horror stories about investors who have been invested with the ‘buy and hold’ financial advisors. They have lost a huge chunk of their portfolios, some up to 60%. In chat rooms, people are freaking out about their declines, and yet they continue following the advice to buy because they believe in the advisor. Fortunately we started selling very early, and thankfully we are not seeing the huge 30% to 60% declines.
We were hoping that Trump would ‘approve’ use of the “cure” hydroxychloroquine (see link below) but he is being stone-walled.
SO, after extensive reading over the weekend, WE BELIEVE THERE IS A GOOD CHANCE MARKETS ARE GOING LOWER. (unless something dramatic happens soon) The unemployment claims on Thursday will probably drive markets lower. IF you still own individual stocks we suggest you sell.
We also believed the oil situation would be resolved, but that does NOT appear to be in the cards.
Here are two links to some very good articles which explain the current environment on BDCs, REITs, et al.
LINK Hospitals have been rushing to stockpile a decades-old antimalarial drug touted by President Donald Trump and others as a treatment for the new coronavirus.
Hydroxychloroquine is being snapped up by medical systems at more than twice the typical pace as US hospitals seek to build large inventories in anticipation of the medication’s potential use in patients with Covid-19, the respiratory illness caused by the coronavirus.