• Stock market crash 2020: 3 steps I’d take to make a million

    $1 million with fireworks and streamers, millionaire, ASX shares

    The 2020 stock market crash has caused many investors to experience significant paper losses on their portfolios. In the short run, further declines cannot be ruled out due to the possibility of a second wave of coronavirus and its potential impact on the world economy.

    However, now could be the right time to buy high-quality stocks while they trade on low valuations. By adopting a long-term view and reinvesting dividends received where possible, you could capitalise on the recent market crash to increase your chances of making a million.

    A long-term view

    As mentioned, the short-term prospects for the stock market are highly uncertain. Previous bear markets have included brief market rallies that have not lasted for a sustained period of time. Therefore, while many stocks have risen from their recent lows, there is the potential for them to deliver disappointing returns in the coming months.

    As such, adopting a long-term view towards your stocks could prove to be a highly worthwhile move. The stock market’s past performance shows that it often has periods of negative growth, but in the long run it has historically delivered relatively high returns compared to other mainstream assets.

    By accepting that your investments could experience difficult periods over the short run, and allowing them the time they need to deliver high returns, you could increase your portfolio’s growth rate.

    Focusing on value

    It can be tempting to simply buy the cheapest stocks you can find in a market crash. However, some industries and businesses may fail to make a comeback from the current difficulties they are facing. They may, for example, have high debt levels or be void of a clear competitive advantage over their peers.

    Therefore, it is important to consider the quality of a business, as well as its price, before buying it. In doing so, you can unearth the best value stocks that are on offer. They may be better placed to survive the upcoming economic challenges facing the world economy, as well as deliver a strong recovery relative to their peers over the long run.

    Reinvesting dividends

    A large proportion of the stock market’s historic total returns have been derived from the reinvestment of dividends. Therefore, reinvesting your income returns whenever possible following the recent market crash could boost your chances of making a million.

    With many stocks currently trading on low valuations following their recent declines, now could be an opportune time to make use of your dividend income stream through buying high-quality stocks at low prices. You may even wish to reinvest in your existing holdings through an automated dividend reinvestment service. Over time, this could lower your average purchase price and enable you to benefit to a greater extent from the stock market’s likely long-term recovery.

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    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.

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  • Bulls And Bears Of The Week: Gilead, Shopify, Tesla And More

    Bulls And Bears Of The Week: Gilead, Shopify, Tesla And More* Benzinga has examined the prospects for many investor favorite stocks over the past week. * This week's bullish calls included semiconductor and casino stocks. * Cruise and electric vehicle stocks were among the bearish calls.The Dow Jones industrials ended last week more than 6% higher while the S&P 500 saw almost a 5% gain. That was due in part to a shockingly strong employment report for May and despite mounting unrest nationwide focused on racial inequities, police brutality and the federal response to protests. The Nasdaq lagged the other main indexes, up a little more than 3% for the week.As usual, Benzinga continues to examine the prospects for many of the stocks most popular with investors. Here are some of this past week's most bullish and bearish posts that are worth another look.Bulls Shopify Inc (NYSE: SHOP) has been among the best-performing stocks but remains a long-term winner, according to Elizabeth Balboa's "Why Shopify — And Not Zoom — Is The Stock To Chase Right Now.""Why BofA Recommends Buying GPU Plays AMD and Nvidia" by Shanthi Rexaline makes the case that Advanced Micro Devices, Inc. (NASDAQ: AMD) stock is still attractive despite its recent run-up.In "'Long Lines And Packed Flights': Casino Stocks Rise Following Vegas Reopening," Wayne Duggan shares why MGM Resorts International (NYSE: MGM) and others are accelerating their reopening plans.Priya Nigam's "Gilead Analyst: Coronavirus Drug, Arcus Collaboration Make Biopharma A Buy" suggests that consensus estimates for Gilead Sciences, Inc. (NASDAQ: GILD) appear overly conservative.For additional bullish calls, also have a look at "History Suggests Record 50-Day Stock Market Rally May Be Just The Beginning" and "Cramer Says The Latest Rotation Trend Is Driven By 'Ravenous Consumers.'" Bears One key analyst sees trouble ahead for Tesla Inc (NASDAQ: TSLA). So says "Tesla's China, Europe Performance Suggests Quarter Will Be One Of Automaker's Weakest, Says Gordon Johnson" by Shanthi Rexaline.Tanzeel Akhtar's "Morgan Stanley Deboards From Cruise Lines, Bearish On Carnival, Norwegian And Royal Caribbean" looks at why Norwegian Cruise Line (NYSE: NCLH) and its peers have a long slog to recovery."Ex-Whole Foods Exec Says Grocery Stores Need To Prepare For Next Disruption" by Jayson Derrick discusses why the likes of Kroger Co (NYSE: KR) likely are unprepared for further disruption of the national food chain.In Priya Nigam's "DocuSign's COVID-19 Quarantine Benefits Could Last Longer, But Not Enough To Move BofA From Sidelines," see why upbeat DocuSign Inc (NASDAQ: DOCU) results were not good enough.Be sure to check out "Pro Investor Says Market Isn't Pricing In China Risks" and "5 Reasons The Value Stock Rally May Run Out Of Steam" for additional bearish calls.At the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Barron's Picks And Pans: Cisco, Gilead, Netflix, Wayfair And More * Benzinga's Bulls And Bears Of The Week: Boeing, SmileDirectClub, Tesla And More * Benzinga's Bulls And Bears Of The Week: Ford, Gilead, Microsoft, Intel And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Fox News apologizes for on-air graphic showing market reaction to violence against black men

    Fox News apologizes for on-air graphic showing market reaction to violence against black menThe graph showed positive stock market changes after Martin Luther King Jr.'s assassination and the police killings of Michael Brown and George Floyd.

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  • Hedge Funds Nibbling On Pluristem Therapeutics Inc. (PSTI)

    Hedge Funds Nibbling On Pluristem Therapeutics Inc. (PSTI)In this article we will take a look at whether hedge funds think Pluristem Therapeutics Inc. (NASDAQ:PSTI) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips […]

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  • Do Hedge Funds Love Palatin Technologies, Inc. (PTN)?

    Do Hedge Funds Love Palatin Technologies, Inc. (PTN)?The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]

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  • Should You Buy Halliburton Company (HAL)?

    Should You Buy Halliburton Company (HAL)?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. In this article, we look at what those funds think […]

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  • Hedge Funds Cautiously Watching Actinium Pharmaceuticals Inc (ATNM)

    Hedge Funds Cautiously Watching Actinium Pharmaceuticals Inc (ATNM)In this article we will take a look at whether hedge funds think Actinium Pharmaceuticals Inc (NYSE:ATNM) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips […]

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  • Elon Musk calls for breakup of Amazon

    Elon Musk calls for breakup of AmazonElon Musk tweeted its ‘Time to break up Amazon’, after the tech giant said Musk’s upcoming COVID-19 book does not meet Amazon’s guidelines for sale.

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  • Should You Buy Delta Stock Before Travel Demand Returns?

    Should You Buy Delta Stock Before Travel Demand Returns?[Editor's Note: "Stay on the Sidelines While Delta (DAL) Stock Is Up in the Air" was originally published April 13, 2020. It is regularly updated to include the most relevant information.]Source: Markus Mainka / Shutterstock.com With investors jumping back into airlines, what's next for Delta Air Lines (NYSE:DAL)? The legacy carrier's shares have rallied 70% off their lows set in mid-May. While the novel coronavirus continues to impact air travel, Wall Street is betting on a swift recovery in DAL stock.However, many things remain uncertain. On one hand, air travel is slowly rebounding from its extreme lows in weeks prior. On the other hand, even if the novel coronavirus quickly fades away, it could be years until a rebound happens, as some industry leaders have predicted.InvestorPlace – Stock Market News, Stock Advice & Trading TipsYet, while airline stocks remain risky, Delta may be a cautious way to bet on a V-shaped recovery for the industry.Why? Delta is relatively stronger than legacy rivals like American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL). That doesn't guarantee they will survive today's headwinds. Yet, being the "best of the worst" may be enough to justify a buy.Let's dive in, and see why it could be a shrewd move in hindsight to jump in at today's prices. What's Next for DAL Stock After Covid-19?The three major legacy airlines, American, Delta, and United, all face big trouble from the coronavirus. With the lion's share of their routes inactive, cash is quickly flying out of the window.Compared to the other two, is Delta stock a stronger rebound opportunity? At first glance, it's hard to say yes. As InvestorPlace's Mark Hake wrote Jun 1, the company continues to experience massive cash burn. The daily losses are coming down, from $50 million per day to $40 million per day. But, cash burn could continue through the end of 2020.Yet, they may have enough capital to wait things out. According to Raymond James' Savanthi Syth, the company has about 11 months of liquidity. And, with air travel slowly picking up, they can probably stretch that out a bit. * 10 M&A Deals I'd Love to See Happen in the Second Half of 2020 Previously, Stifel's Joseph DeNardi cited Delta as being financially stronger relative to rivals like American. That may not mean much as underlying demand remains depressed. But it could indicate this stock is the best legacy carrier to bet on for an industry rebound.However, a swift recovery remains a long shot. It may be up to five years before airlines recover from the coronavirus. Also, airline stocks could pull back again on the heels of additional bad news. Air travel may be slowly returning. But, with flights no more than 60% full, profitability will remain a challenge. Did Buffett Call the Bottom?Back in April, Warren Buffett sold Berkshire Hathaway's (NYSE:BRK.A, NYSE:BRK.B) stake in DAL, along with other airline stocks like American, United, and Southwest Airlines (NYSE:LUV).Given the big change in the operating environment for airlines, it makes perfect sense Buffett and Berkshire did a 180 on airline stocks.Best case scenario, airlines ride out the weak air travel market, and return to prior price levels a few years out. Worst case scenario? Government intervention fails to keep airlines afloat, they require additional bailouts/capital infusions, and their share prices fall to lower levels.In short, the thesis has changed on airline stocks. It's no surprise Buffett cut his losses.Yet, did the "Oracle of Omaha" call the bottom, as a Barron's article predicted in May? It looks like it. Granted, the near-term picture for airlines remains bleak. But, with the specter of air travel bouncing back sooner than predicted, it may be too late to go short airline stocks. Legacy carriers remain a high-risk proposition. But, by going long the "least broken" of the three, investors could see additional gains in the near-term. Buy DAL Stock, Even If Things Remain Up in the AirDelta has a stronger balance sheet than its legacy rivals. But it's all relative. With billions flying out the door each month due to the coronavirus, the company faces a tough road ahead. Travel demand may be slowly bouncing back. But that doesn't mean a swift return to profitability.Yet, bleak prospects have already been priced into this stock. Buffett may have called the bottom. Sure, investors could be getting ahead of themselves. But, Delta stock may move even higher as positive developments continue.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis for web-based publications since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Should You Buy Delta Stock Before Travel Demand Returns? appeared first on InvestorPlace.

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  • The Party Is Over for Moderna Stock Holders

    The Party Is Over for Moderna Stock Holders[Editor's Note: "Sell Moderna (MRNA) Stock as Covid-19 Catalyst Inflates Valuation" was originally published April 2, 2020. It is regularly updated to include the most relevant information.]Source: Shutterstock Is the party over for Moderna (NASDAQ:MRNA)? MRNA stock soared in May as the company's novel coronavirus prospects looked bright. But now, with investors selling off vaccine plays, the days of this being a "hot stock" may be coming to an end.Granted, this doesn't mean "game over" for their prospective mRNA-1273 vaccine. Already entering phase 2 clinical trials, they could have a vaccine available for use by the end of the year.InvestorPlace – Stock Market News, Stock Advice & Trading TipsPerceived "first mover advantage" is one thing Moderna has going for it. Another is social proof, courtesy of the U.S. government. With a former exec leading the White House's vaccine efforts, it seems Moderna has yet another edge.Yet, as investors have either cashed out, or lost love, for Moderna, shares have taken a hit. Just a few weeks ago, the stock was parabolic, hitting prices as high as $87 per share. * 10 M&A Deals I'd Love to See Happen in the Second Half of 2020 Now? Things aren't so hot anymore. Shares now trade around $60 per share. But, could today's pullback be a buying opportunity?Not so fast! Moderna shares still trade at a rich valuation. Investors continue to price in much of the potential gains from not one, but two vaccines (more below). In short, shares could tumble further if both efforts wind up being fruitless. I know, it's fun to speculate on biotech stocks. Especially when it ties into a newsworthy event. But, as Moderna stock trends lower, it may be too late to ride the coronavirus vaccine wave. Coronavirus Vaccine and MRNA StockWhat a difference a few weeks makes. On May 18, news of positive preliminary findings put Moderna shares into hyper-drive. But, vaccine experts went through the details. According to them, the recent news revealed little about the vaccine candidate's effectiveness.It all went downhill from there. As the company raised equity, insiders sold shares, and other concerns mounted, Moderna's stock price fell back to earth.But, don't take this pullback as being an invitation to buy. Considering so much has been priced into shares, investors still face big potential losses if things don't pan out.So, with this catalyst a bit of a gamble, are there other factors at play with Moderna's stock? Yes. As InvestorPlace's Luke Lango discussed March 5, there's huge potential for the company's prospective vaccine for CMV, or congenital cytomegalovirus.Creating a vaccine for this major cause of birth defects may be an even greater catalyst for Moderna. Based on Lango's analysis, if all goes right, the company could generate billions in pre-tax profits if it receives Food and Drug Administration (FDA) approval.But this catalyst was already reflected in the stock price of MRNA. Before coronavirus sent shares higher. The company's market capitalization now stands at around $23.3 billion. In short, the company needs its prospective CMV vaccine to go without a hitch. Any bump in the road could send shares cratering.So would dashed hopes of mRNA-1273 becoming the first Covid-19 vaccine. Considering investors have priced in both catalysts, it's tough to justify a buy. Other Vaccine Stocks Could Offer Better ValueThe recent run-up in Moderna stock means shares trade at a rich valuation. The company's enterprise value/sales (EV/Sales) ratio currently stands at 422.7. That's a lot more reasonable than another coronavirus vaccine play, Inovio (NASDAQ:INO). That company's shares trade at a EV/Sales ratio of 688.8.But, if you're looking for a pure coronavirus vaccine play, there are other opportunities selling at lower (yet still frothy) valuations. Take, for example, iBio (NYSEMKT:IBIO), which currently trades at a EV/Sales ratio of 158.5. Granted, this name may be more of a gamble. But, a binary play like iBio may be a better than a more diversified one like Moderna.Moderna shares would bounce back if their vaccine shows success. But the potential rise in its stock price, percentage-wise, likely isn't as great as you'd see with an iBio or an Inovio.You could take that as a positive. A less binary play, downside for Moderna could be lower given their other catalysts. But that's hardly a great reason to buy, as the share price remains inflated due to past coronavirus speculation. Sell Moderna Stock as Shares Go ParabolicDon't buy Moderna because you think it'll strike gold with a coronavirus vaccine. Other vaccine contenders could offer a more promising risk/return proposition.Moderna stock does bring a lot more to the table. Their CMV vaccine catalyst could really move the needle if it pays off. But, this doesn't make shares a low-risk opportunity. If that vaccine fails to deliver, much of the stock's rich valuation would evaporate overnight.Whether you bought stock in MRNA for the CMV or the coronavirus catalyst, it's clearly time to sell. With shares treading water around $60 per share, cashing out today could be the best call.Thomas Niel, contributor to InvestorPlace, has been writing single-stock analysis since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post The Party Is Over for Moderna Stock Holders appeared first on InvestorPlace.

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