The markets are on pace for their worst week since the financial crisis in 2008, and indexes are hitting their lowest levels since October. This correction was needed as the equity market’s valuations were getting much too rich.
Institutional investors are panicking in the corona crisis, but that doesn’t mean that we should. Large funds have clients they have to report to, and when they underperform the broader market, they risk losing these clients. These giant funds are moving fast to avoid losses and pushing the markets even further down with their hefty volume and derivative trading to hedge losses.
Individual investors have no one but themselves to answer to, and short term losses aren’t the end of the world for our long-term portfolios. We know that stock will recover as they always do. We should be looking at this as a clearance sale on the exchanges where all your favorite stocks are trading at a discount.
There are so many stocks that are finally falling into a price range that I am comfortable with. I this video I will discuss a couple of these stocks.