Entering text into the input field will update the search result below

Despite Corona Uncertainties - I Will Be Loading Up On Quality Stocks

Mar. 08, 2020 3:54 PM ETS&P 500 Index (SP500)35 Comments
Leo Nelissen profile picture
Leo Nelissen


  • The stock market has entered a period of massive uncertainty resulting in near-record volatility and rapid losses.
  • Yields are dropping to new lows, resulting in tremendous pressure on the dollar.
  • I believe dividend investments remain key to a successful long-term investment and should be bought at a discount.

I have to be completely honest. I hoped I did not have to write this article. Since my last market update, a lot has happened that warrants a new update. In my last article, I was bullish as economic indicators were bottoming and supporting cyclical stocks. Everything went right until the coronavirus escalated. Right now, we are in a period where current economic news does not matter. While leading indicators and jobs further strengthened, investors looked the other way as everything will be worthless once the coronavirus shows its true colors and impact on the economy. Needless to say, my dividend stocks took a beating. Nonetheless, I am everything but depressed and look forward to buying more at lower prices. In this article, I will tell you why.

Image result for wrecking ball

Source: PhocusWire

Volatility Is Back - And It Has Gotten Ugly

If there is one thing the market hates, it's uncertainty. Everything that causes uncertainty somewhat pressures stocks. In 2008, it was the uncertainty surrounding liquidity and loans, in 2016 the market was pressured by rapidly falling commodity prices and a manufacturing recession. In 2018, investors were facing trade uncertainties. Q1 of 2020 is shaping up to be the quarter crushed by the coronavirus. While stocks held up quite well in the first weeks of the year, everything came down crashing when global coronavirus cases started to accelerate. I am sure everyone knows what the S&P 500 chart looks like, but here is the bigger picture:

Source: TradingView

As stupid as this sounds, but we are once again in a correction that is clearly visible on the chart. We are actually in the quickest correction in history. Never before have stocks entered a correction at a faster pace than in 2020. On top of that, the market is moving by 3% almost every day (either up

This article was written by

Leo Nelissen profile picture
Welcome to my Seeking Alpha profile!I'm a buy-side financial markets analyst specializing in dividend opportunities, with a keen focus on major economic developments related to supply chains, infrastructure, and commodities. My articles provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. I aim to keep you informed of the latest macroeconomic trends and significant market developments through engaging content. Feel free to reach out to me via DMs or find me on Twitter (@Growth_Value_) for more insights.Thank you for visiting my profile!

Analyst’s Disclosure: I am/we are long O. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article serves the sole purpose of adding value to the research process. Always take care of your own risk management and asset allocation.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.