I confess that I was more than a bit surprised when markets rallied last week.
The Fed is telling us that if the economy remains shuttered much longer, we could see unemployment reach 32%.
That’s 30% higher than at the depths of the Great Depression.
Medical experts are telling us that deaths from COVID-19 in the United States could reach 100,000 before all is said and done.
In a news-driven market, nothing about any of that suggests this is anywhere close to a buyable bottom.
However, even in markets as uncertain as these, there are still a few strategies that can help you generate the cash you need if you’re bold enough…
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…