Bear Market Quick Thoughts

Bear Market Quick Thoughts

The recent market environment could cause anyone to panic. I think this historical decline should draw attention to the importance of planning for short-term cash needs ahead of time, and for keeping a diversified portfolio. Remember that investing capital is for the long-term and it is a strategic decision to create a diversified portfolio and stick to it throughout market cycles.

Speculating, or tactical investing, however, is typically implemented on a short-term basis. Make sure if you do choose to act in extremely turbulent market environments that you are doing so for the right reasons. A tactical short-term play is fine if you have the capacity and nerve, but don’t lose sight of your long-term goals and strategic game plan.

That being said, and for whatever it is worth, I have not sold anything in my retirement accounts during this decline. Beginning at the end of 2019, I began to increase the cash position in my trading account, and since then have slowly deployed some of that capital back into the equity markets. This year I have bought the following: SCHO, GS, SDC, KMB, VZ, LNVGY, BAC, SLV, GLD, FB, UTX, MOMO, GOOGL, HACK, SCHE and SCHB. I plan to continue buying equities long throughout any downturn.

Regarding the huge spike in volatility and large equity market declines seen, I think a lot of the concern may be around the debt markets, the oil producers are in a particularly unfortunate position due to the substantial spot price decline. So, on top of retailers, restaurants and the like being in a subpar position due to coronavirus concerns and precautions, oil firms are also in a poor position. Since our financial institutions lent those firms capital, it’s a strain on their own position as risk has increased while the risk-free rate has decreased. With rates across the curve at historically low levels, lenders aren’t in a beneficial spot (making loans to riskier debtors and having to do so at a lowered risk-free rate). But I’d assume the banks can handle it all given the stress tests that were Implemented post the financial crisis and the FED standing by to help in any means necessary. I digress, besides direct coronavirus direct fears, I think that the debt concerns have been going on in the background hurting the financial sector specifically.

Unfortunately, the likely outlook is for more bad data as we get more tests and results. I expect both 2020Q1 and 2020Q2 corporate results to be negatively impacted; and I hope business and sentiment rebound from there, but the impact could certainly be more prolonged. Of note, the media coverage on the virus has been excessive and it is clear people are panicking. I am not a medical expert, but I would like to say that this does not seem like a long-term issue for the global economy. Remember to make decisions with your investment time horizon in mind and not to act out of fear.

https://almondconfirmed.com

73 thoughts on “Bear Market Quick Thoughts

  1. Pingback: cialis tadacip 20mg

  2. Pingback: Buy Fosamax (Alendronate) 70mg, 35mg Online - Fast Shipping

  3. Pingback: Buy Elavil (Amitriptyline) 75mg, 50mg, 25mg, 10mg - Best Offers

  4. Pingback: Buy Atarax (Hydroxyzine) 25mg, 10mg - Best Prices 2023

  5. Pingback: order methotrexate injection

  6. Pingback: cheap neurontin no prescription

  7. Pingback: etodolac 200mg

  8. Pingback: buy inderal la online

  9. Pingback: buy lamotrigine online

  10. Pingback: strattera for cheap

  11. Pingback: exelon buy

  12. Pingback: order risperdal consta

  13. Pingback: generic diphenhydramine

  14. Pingback: tizanidine online

  15. Pingback: buy nitrofurantoin online

  16. Pingback: where to buy lamisil tablets online

  17. Pingback: zocor 5mg

  18. Pingback: cheap diltiazem

  19. Pingback: meclizine prices

  20. Pingback: generic pioglitazone

  21. Pingback: prednisone 40mg

  22. Pingback: amantadine 100mg

  23. Pingback: requip cheap

  24. Pingback: cheap triamterene

  25. Pingback: generic bentyl

  26. Pingback: cheapest arimidex

  27. Pingback: buy nizoral walmart

  28. Pingback: fluoxetine price

  29. Pingback: dulcolax and pregnancy tablets

  30. Pingback: cheap compazine

  31. Pingback: cheap lipitor 10 mg

  32. Pingback: cheap keppra online

  33. Pingback: discount singulair online

  34. Pingback: furosemide pill

  35. Pingback: buy doxazosin 2023

  36. Pingback: buy topamax no prescription

  37. Pingback: buy orlistat online uk

  38. Pingback: who has zyrtec on sale

  39. Pingback: coumadin pill colors

  40. Pingback: buy zantac line

  41. Pingback: decadron online

  42. Pingback: metoprolol generic

  43. Pingback: tamoxifen online

  44. Pingback: order premarin no prescription

  45. Pingback: buy ibuprofen online

  46. Pingback: what does claritin pills look like

  47. Pingback: buy cheap cozaar

  48. Pingback: order flonase

  49. Pingback: minipress tablets prazosin

  50. Pingback: buy depakote

  51. Pingback: tizanidine generic

  52. Pingback: medrol tabletta

  53. Pingback: where can i buy clomid and metformin

  54. Pingback: lasix water pill online

  55. Pingback: buy generic celebrex no prescription

  56. Pingback: can buy pyridium over counter

  57. Pingback: buy imitrex injection

  58. Pingback: clonidine anxiety disorders

  59. Pingback: fexofenadine online

  60. Pingback: olanzapine price

  61. Pingback: buspar 15 mg dividose tablets

  62. Pingback: buy toradol im

  63. Pingback: dramamine 2023

  64. Pingback: buy propecia france

  65. Pingback: order promethazine codeine liquid

  66. Pingback: flomax mr tablet

  67. Pingback: carbamazepine 2023

  68. Pingback: aricept discount card

  69. Pingback: buy lisinopril

  70. Pingback: prilosec discount

  71. Pingback: cheap depo provera shot

  72. Pingback: order ventolin online uk

  73. Pingback: allegra cheap

Leave a Comment