If you are just now tuning in to the Dow Jones Industrial Average, “The Dow”, March 23rd was the end of the bargain stocks free fall. That was the day to be a buyer, not April 27th. According to business centered shows, investors are trying to second guess consumers now, buying stocks like Netflix and Pelleton – the couch potato friendly companies. I’ll be taking a look at Docusign and Zoom, and if I had any, I would be divesting commercial spaces. After we go back to work, how many people are going to enthusiastically embrace the extra hour that not commuting gave to their future days? They are going to stay away from closely packed multi-story office buildings with no fresh air.
During this global shakeout, is it a good time to get into energy stocks? What’s on your shopping list for your stock portfolio? Not financials – they learned nothing from the last global economic meltdown, though I cynically expect banks to be rescued again. Oil futures went negative last week. That has NEVER happened before. The Russians are battling the Saudis and everybody is over-producing at a time when there are no cars on the roads. Air pollution is clearing up the world over.
As the world changes around those of us sheltering at home, I find I cannot get my head around ALL of the consequences. It is strangely comforting listening to The Closing Bell on MSNBC, It seems the experts are the most puzzled, stock ratings by analysts are all over the map. Business shows are where I get a glimpse of actual effects of the coronavirus. Oil prices are plunging once again, and Russia was all in with Gasprom, that’s why they invaded Afghanistan – to build a road to the oil fields. The U. S. is still waging war there when everyone knows that eighteen years of occupation with no end in sight is foolish at best. Are we guarding those roads now? How can low oil prices increase the value of solar companies? Wouldn’t that have the opposite effect?
Anyway, the bottom was already scraped on March 23rd That was the end of the precipitous slide for the indices, but not necessarily for my hand picked stocks. Here’s hoping the new legislation will legalize marijuana, because I have a number of producers and dispensaries just waiting for the Federal Government to follow the wisdom of the states. On the other hand, since the vapid magician implemented his tawdry chaos, that’s just not likely. I’m going to go polish up my crystal ball.