Investment advice may seem dime a dozen with multiple options, with one to fit anyone’s views. Shifting through the various analysis can be tough, with each containing a sense of reasonableness.
Current investment debates include whether the stock market will rebound in a V shape, a U shape, a W shape, or even a square root shape. While some economists believe that there could be some short-term improvement, short of finding a COVID-19 vaccine, there is the potential of seeing a return to increasing cases, death, and stay at home orders.
So how does an investor who is not highly involved with the market manage their investments?
One view is that of Thomas H. Kee Jr., President and Chief Executive of Stock Traders Daily and portfolio manager at Equity Logic, who told MarketWatch he suggested a strategy using the S&P 500 and cash.
The article said Kee the US was in a three-phase “greater depression era,” with the first phase taking place when stocks crashed in March. Apparently the second stage is when the stock market disconnects with Main Street – i.e no.w.
For investors, he suggesting riding the market as there are decent chances of seeing highs for the Nasdaq-100 highs and S&P by year-end.
The third (“dark”) stage is expected to occur next year, when stimulus policies end, producing high debt levels. Stage three is usually “fast and harsh and brutal,” he said. His suggestion for then is move to cash but to ride the market out in the meantime.
So, while many people suggest avoiding trying to time the market, is there an opportunity coming up?