Knowledge is Power: Bottom Calling, Depression Lessons, Angry Americans Edition

The US equity market is down just 11% as represented by the S&P 500 year-to-date. Despite the violent crash into bear market in March, stocks have recovered equally strongly in the past few weeks. Nobody knows if this recovery will continue to hold. With the death toll still rising and mass unemployment further increasing it is highly unlikely stocks can pretend to avoid the bad stories. The tech sector is holding up pretty well with investors still attracted to the high-flying stocks of the times. Biotech stocks are beginning to bounce on hopes of a breakthrough with a vaccine for COVID-19. Banks have declined heavily and are facing strong headwinds as the effects of high unemployment rates reverberates across the economy.

Overseas European stocks indices are down on an average 20%. Emerging markets have been hit even worse.

In general here are sectors to avoid and consider:

Avoid – Airlines, Hospitality, Cruise Companies, Credit Card Issuers, Auto Makers, REITs, etc.

Consider – Consumer Staples, Utilities, Railroads, Pharma, etc.

With that brief summary, below are some interesting reads to start off the week:

In The Roman Forum, Rome, Italy


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