Originally Posted by
Dan Druff
You know when you get sick, and things get worse, worse, worse, and just as it peaks, it abruptly gets better really quickly?
That's what's going to happen here. Things will keep getting worse and the panic will keep increasing... then there's going to be a sign that things are improving or less catastrophic than we feared, and suddenly there's going to be a wave of relief and feelgood in the US.
People will be cautious at first, but everyone will be itching to return to life as normal.
The market will then reflect this. The exceptions:
- Cruise lines. This will take awhile. People won't be ready to jump on a ship right away, and will fear another quarantine.
- Companies beaten into submission by this disruption. If they were playing too fast and loose with debt, and lack the operational cash to continue, we might see a problem.
- Earnings reports. They will be down big time for a lot of companies, and when these get released, we will see market drops.
I'm no finance expert, but that's what I see happening.
I'm not sure when the bottom is coming. I can't even begin to predict that. But I think it won't be too hard to see when it comes -- look for any sign of optimism that we are on our way to getting past this -- and then buy, buy, buy -- especially the stocks which got most depressed by this and don't seem like they're companies on the verge of collapse.