If the virus disappears tomorrow, which it will not unfortunately, you then have to deal with the aftermath. Have you ever seen the entire world shut down for months, what is the aftermath?? Does
anyone know for sure. We have one vendor that we had 4 pre-books for this year, 2 of those have been pushed back TEN MONTHS! Imagine that on a larger scale. You have governors in certain
states that are waiting for some date in November to open, or 14 days will no covid deaths to open. Don't confuse the down sloping virus numbers with economic conditions, 2 completely separate
Stock market should be looking at scenario 6 months ahead, which is the 4th quarter.
No question results of 2nd quarter will look horrible.
3rd quarter will also be ugly.
But if market stays positive from here it is signaling a rebound in 4th quarter.
I am NOT a short term trader. If I was, my golf handicap would have stayed above 20+
Trading long term (3-5 years) has given me time to lower my handicap to single digits at age 75 when
I was getting close to breaking my age. Now at age 80, I don't like golf anymore. It is now treadmill only.
I am always looking at 3 years ahead when buying or selling.
So based on that what should I be sitting on MM dollars in cash or SP500 index funds.
I am reaching the conclusion SP500 is a better place for my money at end of 3 years.
Edited by pdx5, 17 May 2020 - 03:17 PM.
"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule