Last week, the Bull sent out a blog explaining how our authorities were and are taking draconian actions to buy time to stretch out the impact of the coronavirus epidemic. This is to better prepare resources and manage medical capacity.
We now use the term to mean buying time, it’s time to begin purchasing good companies. The stock market now offers compelling value to the patient investor. This is when it is possible to really make a killing. It’s a replay of the old Rothschild adage that when there was blood in the streets, it was time to buy.
How much and how fast is dependent on each individual’s capacity. The timing of stock market recovery is uncertain but there will be one. It may come on fast and furious once it happens and the best opportunities will be lost. The increases will not be sequential, but huge jumps. It’s not easy to buy during crises, it is, however, one of the best times. Most will not do it, but that is what creates the bargains in the first place. Remember, the market will turn before the facts are obvious on the ground. If you don’t commit more to your investments, at least stay steady.
The Lonely Bull