So we are kind of in an unprecedented time. Looking around the market right now is like looking at a complete wasteland. Yields have blown out, oil is down 10%, and the world is collapsing.
The only place to hide have been bonds, where yields have plummeted to decades lows. Had you been lucky enough to have a fund or two in your portfolio, you will have been weathering the storm that is this market over the past couple of weeks.
Utilities aren’t even a safe haven, getting bogged with the rest of the market.
All the things I’m mentioning here are a given, there are a couple ways you can play the market cycle here, and all are valid.
Some things to consider, however. First, the market will bounce back. If you are holding on for dear life you may be finding yourself with an urge to sell everything and wait this out. It is a solid strategy and one that is worth following if you are nervous trying to time the markets here.
Second, you could try to make a play. If you’re trying to play a bounce, choose a popular name, as they’re going to see the fastest rebounds when the dead cat bounces. Look at the FAANG stocks for a quick snap back.
Remember the teachings of Jesse Livermore. A stock is never too high to buy or too low to short. Bond yields may bounce here, so don’t rush in after such an extreme move.