BLOOD IN<br>THE STREETS…

BLOOD IN
THE STREETS…

Everything is changing so quickly that by the time this article goes to print, the content written may no longer apply. So I have decided moving forward, to try and educate the reader on better ways to approach investing. Baron Rothschild said to buy when there is blood in the streets. There was much blood in late March which created great buying entry points. Most recently, Fed stimulus, day traders and algorithmic trading pushed the recovery rally to unsustainable levels which diverged from the overall economy. This created an environment where rampant speculation moved struggling companies higher on little fundamentals. This can create an environment that could lead the indexes to pull back as the “risk on” mentality eases. In the post COVID world, the playbook shouldn’t be speculation. It should be buy the companies with strong balance sheets and ones that have a competitive edge. There are plenty of companies that are post-COVID and recession- resistant that will become attractive and don’t require a speculation mindset. Everyone likes a discount.

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