Columbus, arriving in the New World, thought he knew where he was going, but he didn’t know where he was. In the stock market, we have embarked upon a correction, but we don’t know where in the process we happen to be.
At the outset, the Bull stated that most of the damage would be done early, but that recovery was likely to be ragged and drawn out. That still seems to be likely. During a pandemic, there is probably no one event that can completely turn everything around. Good medical therapies can certainly help but will take time to produce and disseminate to all the places it is needed. A vaccine is a ways off and needs to be available in huge quantities.
Investors always hope for a V bottom. We got some recovery this week from a very oversold market. Internals in the market, money flow versus price action, pointed a to potential upturn. However, this probably will not be a sustained recovery. Look for a retest of the recent lows. Another leg down in this market is also possible if not probable. For long-term investors, great values are being created.
The Bull and his partners are offering a free financial plan (value $1500) during the month of March for anyone who wants one, not just for our clients. We hope to help investors avoid doing harm to their financial futures by providing them with information they might need to make rational decisions during this crisis.
Call us to take advantage of this offer (904) 346-3460.
The Lonely Bull