Time for another ‘Article of Interest’ post. This is now the 6th post in this series, with the last one appearing two months ago. This time I share another article from MarketWatch.
To recap the intent of this… every now and then, when perusing investing or personal finance articles across the Internet, I come across what I call an ‘Article of Interest’, or ‘A of I’ for short.
I decided it might be helpful to share a link to the article in case some of my visitors would find it of interest as well.
In most cases, the article will focus on dividend-paying stocks or dividend growth investing (DGI). However, other finance-related topics might be highlighted, too.
Now that we are up-to-speed, let’s see what this A of I is about…
Link Overview
Today’s link takes you to an opinion article regarding stocks revisiting their coronavirus crash lows. It also uses history as a gauge to provide a couple of potential dates for when the bottom might come.
Note – the opinion is offered up by Mark Hulbert. I don’t know if you’ve heard of him, but he provides a rating service (Hulbert Ratings) that tracks the performance of investment newsletters that pay a fee to be audited.
The two dates for the potential new low seem reasonable to me, as it will probably take weeks/months before life is on a return path to normalcy, not to mention for the markets to obtain the majority of information they’ll need to forecast future corporate prospects. In the meantime, the uncertainty will most likely result in market volatility remaining elevated.
Given last week’s market rally, it could be easy to believe the worst is over. However, I also have a suspicion that the markets will take another significant leg lower. I certainly don’t know if we’ll reach the March lows again, but it won’t surprise me.
Do you think we’ll revisit the market lows from March? If so, care to guess a potential time period for a new low?
I hope you find the article useful and/or enjoyable. As always, please share your thoughts once you’ve had a chance to read the material.
See you next time…
Mr. Hulbert’s prediction of a few months sounds reasonable. I believe we will soon work out ways to free people to live their lives, by a combination of testing, treatment, PPE, awareness of germs, and eventually a vaccine. The trouble is eliminating the problem with the virus doesn’t mean the recession is over. I’ve lived through many recessions, and they didn’t involve anything physically stopping the economy like this. I think policy makers made a huge mistake in introducing “stimulus” before the underlying problem is fixed. Stimulus primes the pump, getting people spending, so people start hiring, so people start spending, and so on. IMHO they should have put all effort into things that would get people back to work and done nothing to mask the pain of the economy being shut down. Like Captain Kirk, I NEED my pain. The massive fiscal stimulus could have come after people can get to work. For this reason, I think we’re in for a recession triggered by the economy being paused, and it will take a few rounds of stimulus to get things going again.
All this assumes the loose policy won’t cause a monetary/fiscal crisis. I think that will happen eventually, but not in the near future.
Hey Charles. Sounds like you’ve given this some good thought. I can’t say I know what the right answer is, as one has to balance the health issues, impact on people’s jobs/livelihood, and the economy in general.
In any case, a plan is in motion and hopefully things will conclude and get back in normal in a timely fashion.