(0:30) - Stock Market Sell Off On Coronavirus Concerns (6:45) - The Many Pullbacks of the Bull Market (14:50) - Stocks To Watch During Market Downturn (23:00) - Episode Roundup: OXY, EXPE, FB, UAL, RCL Podcast@Zacks.com
Welcome to Episode #214 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about the stock market volatility due to the coronavirus epidemic and what investors can do during it.
Coincidentally, this week legendary value investor, and Chairman of Berkshire Hathaway, Warren Buffett joined CNBC’s Becky Quick in a multi-hour interview covering a range of investing topics, including what an investor should do during these volatile times.
You can watch the full interview on YouTube
His advice was classic and is worth repeating.
Key Advice from Warren Buffett
1. Investors are owners. You don’t just own a “stock”. You own the business.
2. Don’t buy or sell your business based on headlines. Has the long-term outlook changed at all?
3. Have cash on hand for buying opportunities.
Seems simple, right?
But for many investors it’s hard to execute. Panic and fear often take over.
But why not take control of the situation.
How do you do that?
Have a plan.
Make a Wish List for that Cash
Keep a wish list of your favorite stocks and where they would need to trade to go “on sale.”
Energy. Occidental Petroleum just hit 52-week lows. It has a dividend yielding 8%, but earnings are coming up so be sure to check in and see if that dividend is “safe.” OXY
Travel. Expedia shares are down 10% on coronavirus fears. It just announced it was cutting 3,000 jobs, or 12% of the work force, as well. It’s trading with a forward P/E of 15. EXPE
Airlines. United Airlines ( has fallen 12% in the last 5 sessions. It also withdrew its 2020 guidance due to the coronavirus uncertainty. It’s trading with a forward P/E of 6 but those earnings estimates could be cut shortly. UAL Quick Quote UAL - Free Report)
Cruises. Royal Caribbean has fallen 18.6% in the last week on coronavirus fears. The shares are now yielding 3.2%. It has a forward P/E of just 9.6. RCL
Social media. Facebook ( is down 9% over the last 5 sessions and now trades with a forward P/E of 21. But with three massive platforms, Facebook, Instagram, and WhatsApp, it has the ability to keep friends and family connected during these uncertain times. FB Quick Quote FB - Free Report)
What else should you know about staying calm during this market volatility?
Listen to this week’s podcast to find out.
[In full disclosure, the author of this article owns shares of FB in her personal portfolio.]
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