Dear %%first_name%%,
Headlines this morning such as “oil price” and “oil price collapse” war, were not ones needed right now, with the world worried about supply problems linked to the Coronavirus. This is a local overreaction, which I suspect will be offset by a comeback for stock prices when the smarties see what a buying opportunity has been created by this sell off.
I came across these stats today as if it was delivered via ‘divine intervention’. A story on Barron’s by Al Root on March 8 told us: “The Dow has existed for 6,200 weeks, and in that time, the index has declined more than 10% in one week just 17 times—less than 0.3% of the time.
“The good news for investors is that after those rare events, stocks have had a tendency to rise in the ensuing four-week and six-month periods. The average gain in the four weeks after a sell off is 1.1%. The average gain six months later is about 7.5%.” Right now volatility has been accentuated by computer trading and it’s just another curve ball that we have to cop from a modern stock market!
I know these events make you feel insecure, but I believe we will see a rebound of the market in coming days.
Before today’s market reaction, which is very short term, I was intending to get you to think long term with 10 stocks to hold for 10 years (which will now be at a much better price!) and this topic forms the basis of my article today.
Paul Rickard says that if there is a positive in this current market mayhem, it’s that mispricing opportunities abound! In his article today, Paul looks at some current opportunities in Australian shares and “risky” fixed interest and says that there are also opportunities in international shares.
Once the realisation broke through that the coronavirus (COVID-19) outbreak was a big problem for the world, many investors started to think about stocks that could benefit. In his article today, James Dunn checks out 5 stocks you may not have uppermost in your mind.
And in Buy, Hold, Sell – What the Brokers Say, Against a background of escalating concerns about the potential economic fall-out from the spreading COVID-19 virus, FNArena’s daily monitored seven stockbrokers issued no less than 36 recommendation upgrades for individual listed ASX entities, against 12 downgrades.
Finally, in our “HOT” stocks article, CMC Markets’ Chief Market Strategist, Michael McCarthy, says he likes Wisetech Global (WTC) but doesn’t like Commonwealth Bank (CBA).
Everyone’s going to need some insights for dealing with this current market, so don’t forget to register for your tickets to our Switzer Investor Strategy Day:
Enjoy the read and your week!
Sincerely,
Peter Switzer