The rallies of the past week certainly feel better than the steep declines of prior weeks, but I am not ready to say the bottom is in place just yet.
A V-shape bottom as the virus continues to spread strikes me as unlikely.
If it happens, I will be happy about it as my stocks recover their lost value, but I would be surprised.
There are some positive signs.
Insiders are still aggressively buying shares of the corporations they manage.
That tells me they think the drop is extreme, and the values will recover in the future.
Keep in mind that insiders are not necessarily market timers and are thinking in years, not weeks or months.
If you have an iron will and are able to extend your time frame to theirs, you can follow the officers and directors and take positions in some of the most heavily bought companies.
Let’s take a look…
I’ve often said that it’s usually a bumpy ride to profit, but I will admit that I had no idea we would have to ride out a global pandemic and full-blown market meltdown.
Well, here we are.
We don’t get to pick what happens to us in life, but we do get to choose how we react to it.
We’ve taken a pretty good hit, but we are still standing. I know at times during this onslaught, it has felt like there will never be good news again.
There will be.
The spread of the virus will fade, the economy will reopen, and profits will start flowing into corporate coffers once more.
When it does, it will drive our stocks back to prior levels and eventually onto new highs.
The hard part is being patient and disciplined enough to let that happen.
Sometimes filtering out the noise can be difficult, and that’s why I’m here to help…