Hi Friends,
The US equity markets have been doing relatively well despite of much of the country being shut down from the coronavirus. There have been some bright spots in my holdings which have ridden things out well – one of which is Walmart:
Walmart is hitting all time highs and is well positioned for the increased demand related to consumer staples, groceries, online shopping, delivery services, etc. I think the run will continue for Walmart so I continue to hold. Good news is coming out every day so I am cautiously optimistic the bottom is already behind us. Yes, unemployment will be high, earnings for some companies will be poor and we are at risk of a recession – yet, I think we will bounce back so being out of the market here is risky.
Some of my best stock market moves have been bottom fishing and buying the bad news. I recently did that with Carnival Cruise Lines (ticker: CCL) as they have a healthy balance sheet, a strong market share, and the bad news is already priced in – it has already bounced from the $8s to mid $12s and I think $20 in the short term will be achieved, and am looking for the $50s again within the next couple of years.
What are you buying right now?
Thanks for stopping by,
Brian
