Let me start by saying that I am not a stockbroker or any other kind of financial expert, I am just a guy who is looking for a way for my savings to make more than what my savings accounts are paying. With that being said, I see in this economy a once in a lifetime opportunity to make money.
The stock market has lost billions or perhaps even trillions in value this month, all because of a situation that is temporary: a government shutdown caused by a virus. The President says that he wants to lift that shutdown within the next three weeks. Once that happens, many of the stocks that have taken a huge hit will rebound in a big way. Since stocks need to be held for a year in order to pay the long term capital gains tax rates, this timeline works to my advantage.
Last Tuesday, I bought $7500 worth of stock in restaurants and cruise lines. The particular stocks that I grabbed were ones that had good numbers and were healthy companies up until the end of February. Since then, each of these companies had seen their stock price drop by more than 50%. In one case, this company lost 65% of its price.
Since this price drop is not due to anything that the company has done, nor is it due to any ssytemic problem, there is no reason why the stock shouldn't increase to its previous price within a year of the government imposed shutdown being lifted. Here we are, eight days later, and that initial $7500 investment is now worth $12,000. After discussing it with the Mrs, we are going to buy another $15,000 in stock. I don't think that the market is going to go any lower, and I also think that the odds are good that we will see a doubling of these stocks within a year's time.
If I could afford more, I would do it.
1 comment:
The old saying is "the time to buy is when there's blood in the street," right? If this ain't blood in the street time, I don't know what is.
The only thing better than going buying now would be taking your money out of the market when it was near peak and using that to buy now.
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