Poll: Post Corona
“Post Corona, which will be the best performing market in 2020?”
- 46%: China
- 39%: USA
- 15%: Europe
Unless you think this is “the big one” that will permanently scar humanity and change the way we live forever, it’s time to start quietly buying. Timing the rebound from these coronavirus lows isn’t necessary to make awesome returns. We can position our holdings now, buy at every tick lower, and be patient. Our first question to the Invstr community, is where in the world do we begin?
There’s no denying that China gets a head start. The East Asian superpower was first in, first out of the sickbay, and the country has a huge opportunity to buy raw materials on the cheap while the rest of the world is out cold. The only trouble is; China hasn’t got anyone to make deals with!
It’s interesting to hear the majority of our community take a contrarian view to traders in China itself. The Shanghai Composite has slumped behind expectations, and owing to a lack of state stimulus for markets; sentiment has soured. We’re only past the first quarter of the year, however. Early doors!
Few investors have ever gone wrong betting on America. It’s the best country in the world to make an investment; productive, secure, and with clout. 39% of Americans believe the S&P 500 will storm ahead after the virus is gone, mainly because of stimulus.
There are bailouts happening left, right, and center and the Federal Reserve has pledged “unlimited” money printing. Expect a debased greenback as inflation goes through the roof, but also expect stocks to outpace that swelling dollar. Some bulls think pent up demand means a V-shaped market rally. We’ll have to wait and see.
Last and least is Europe, with only 15% of our community’s backing. A powerless European Union is stretching the Euro to its latest breaking point as each country on the continent faces a different stage in their respective epidemics. It’ll take a brave investor to opt for those shores, but it seems we have volunteers. Good luck!