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Cramer Weighs In On American Tower, Starbucks And More
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How I’d invest after the worst stock market crash in 10 years
The recent market crash brought to an end a global bull market that had lasted in excess of ten years. While it is likely to have caused significant paper losses for many investors, it presents a buying opportunity for those individuals who have a long time horizon.
Through purchasing a diverse range of businesses with solid fundamentals, you can capitalise on the stock market’s future growth potential. It recovered from its previous crash in 2008/09 to produce new record highs, and is likely to do likewise over the coming years.
Recovering from a market crash
The recent market crash caught almost all investors by surprise. However, it is not without precedent, since the global stock market has experienced several sudden downturns in its history.
A common theme among them is that the stock market has always produced a rally that leads to new record highs. Certainly, that may seem unlikely in the recent aftermath of the 2020 market crash. However, the same could have been said during the global financial crisis and during any other previous downturn.
Investors who have the self-discipline to buy undervalued stocks after a market crash can generate high returns in the long run. In fact, market downturns often offer the best value opportunities due to weak investor sentiment.
A diverse range of sectors
After the recent market crash, it is unclear which sectors will produce strong growth in the coming years. Sectors such as retail, travel and leisure, mining, energy and many others face trading conditions that are exceptionally difficult to accurately predict at the present time. They may experience a fast return to pre-coronavirus operating conditions, but may equally have limited opportunities for growth.
Therefore, investing across a broad range of sectors could be an effective means of benefitting from the stock market’s recovery while limiting overall risk. Due to weak investor sentiment, many industries that offer long-term growth potential contain companies with wide margins of safety. Through holding a variety of them, you can reduce your reliance on a small number of businesses for your returns in what may prove to be an unpredictable investing environment.
Solid finances
Buying companies with solid finances after a market crash may also prove to be a sound move. They may be better able to cope with a period of economic weakness than their peers, and could even expand their market position at the expense of rivals that have less robust finances.
Through identifying businesses with large cash balances, access to banking facilities and debt levels that are serviceable even with reduced revenue in the short run, you can build a stronger portfolio that has less overall risk. It may also produce higher returns as you invest in companies that could have a higher chance of prospering in what may prove to be a period of weaker global economic growth.
Here are some great value shares to get you started.
5 stocks under $5
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
- The 3 reasons why I’d build a dividend share portfolio right now
- Stock market crash round 2: why more buying opportunities could be ahead
- 2 ASX dividend shares with yields over 6%
- 2 dirt-cheap ASX shares to buy next week
- ASX 200 closes 0.4% higher, Cochlear share price up 6%
Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post How I’d invest after the worst stock market crash in 10 years appeared first on Motley Fool Australia.
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Were Hedge Funds Right About Piling Into Morgan Stanley (MS)?
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]
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10 Largest ETFs In The World
What are the 10 largest ETFs in the world? Exchange-traded funds (ETFs) have become immensely popular in recent years. Unlike mutual funds, ETFs trade on an exchange much like stocks. You can buy and sell an ETF’s shares throughout the trading day. They passively track an underlying index, similar to how index funds work. Depending […]
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You have to be proactive rather than reactive: Wealth Advisor
Luke Lloyd, a wealth advisor at Strategic Wealth Partners, joins Yahoo Finance to highlight how some Americans are using the COVID-19 pandemic as an opportunity to reset retirement goals.from Yahoo Finance https://ift.tt/2VJ4wGJ
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Here’s What Mylan, Inc.’s (NASDAQ:MYL) Shareholder Ownership Structure Looks Like
Every investor in Mylan, Inc. (NASDAQ:MYL) should be aware of the most powerful shareholder groups. Insiders often own…
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Elon Musk To Bring Tesla Cybertruck On Cross-Country Drive
Tesla Inc's (NASDAQ: TSLA) Cybertruck was recently on display at the Petersen Automotive Museum in Los Angeles, California. Anyone that wanted to see the Cybertruck up close in person could purchase tickets to the museum. The tickets sold out shortly after the event was scheduled, so the event was extended to allow more people to see the truck.This is reminiscent of the early days of Model 3 events, where lines would wrap around buildings for people to get five minutes to sit in the car.> Sure, we will aim to do a cross-country drive with Cybertruck later this year> > — Elon Musk (@elonmusk) July 3, 2020The lowest cost version of the Cybertruck is currently listed for $39,900 and gets 250+ miles of range and a towing capacity of 7,500+ pounds. The most expensive version, with the Full Self Driving software package included, will be $69,900, with 500+ miles of range and a towing capacity of 14,000+ pounds. Production is expected to start in late 2021.Some estimates put the number of reservations over 650,000.Benzinga's Take: The Cybertruck is a radical departure from what is known as a truck today. It does not seem like it will draw traditional truck buyers, but the specs for the price are impressive. The low maintenance, extremely low cost of operation, and extreme torque could be enough to draw some traditional truck buyers.But like the Model 3 did before it, this vehicle will draw an entirely new crowd to purchase it. And with a low cost of production, Tesla could have a hit on its hands in terms of profit per vehicle sold. Bringing the truck across the U.S. to show off could help bring in even more reservations.Related Links:Elon Musk Talks About The Tesla Cybertruck Smash-Up: 'I Was Not Expecting That'Jay Leno Takes Elon Musk For A Drive In A Tesla CybertruckPhoto courtesy of Tesla.See more from Benzinga * Elon Musk Talks New Full Self-Driving Features, Autopilot Rewrite * Tesla Delivers 90K Vehicles In Q2, Trouncing Street Expectations * Musk To Tesla Employees: 'Just Amazing How Well You Execute'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Total ETF inflows YTD are over $200B: ETF Trends
ETF Trends Director of Research Dave Nadig joins Yahoo Finance’s Sibile Marcellus to break down the ETFs to watch in the second half of 2020. from Yahoo Finance https://ift.tt/2NS7BzW
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Fuel Cell Stock Rallies to 17-Year High After China Order
(Bloomberg) — Shares of Ballard Power Systems Inc. rallied to a 17-year high after the company announced a $7.7 million order from China.The Vancouver-based hydrogen fuel-cell maker jumped as much as 8.3% to its highest since December 2002 after the receiving a purchase contract from Guangdong Synergy Ballard Hydrogen Power Co., a 10%-owned joint venture located in China.The company’s technology currently powers over 650 electric buses and more than 2,200 electric trucks in China, according to Alfred Wong, managing director at Ballard.“This follow-on order from the Synergy-Ballard joint venture is an important indicator of the continued progress and market demand for Ballard fuel cell technology,” Wong said in a statement Thursday. “We expect to see high adoption of fuel cell electric vehicles in China.”Ballard is the second-best performing stock on Canada’s benchmark S&P/TSX Composite Index this year with a 165% rally, pushing its market value to almost C$6 billion ($4.4 billion) amid burgeoning speculation that wide-scale adoption of hydrogen fuel cells may at long last be around the corner.“We believe Ballard fuel cell technology will offer a compelling value proposition, including high reliability and durability,” Wong said in the company statement.(Updates to add value of contract in first paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Amarin Corporation plc (NASDAQ:AMRN): Is Breakeven Near?
Amarin Corporation plc's (NASDAQ:AMRN): Amarin Corporation plc, a pharmaceutical company, develops and commercializes…
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