For many people, investing probably seemed easy in the last few weeks. With a bullish opinion about the market and assuming that stock prices would rise forever, one could make a lot of money since the last week in March 2020. But investing is never easy and the last few months actually made it more difficult than ever – at least for myself and probably many other investors that also pay attention to aspects like valuation or fundamental numbers a business is reporting quarterly.
I usually don’t sell stocks (the exception proves the rule), but we don’t have to buy stocks in every market condition. Patience maybe one of the most important virtues to be a successful investor and fighting FOMO (the fear of missing out) seems to be important right now. Especially after such an impressive rally like we saw in April and May, one might wait for setbacks.
(Source: Pixabay)
Nevertheless, I will present seven companies that are either undervalued right now or are at least trading close to the intrinsic value and could be a good investment – if you feel the urge to invest in June 2020.
Market Overview
I have presented my opinion about the current market several times in the past few quarters and I don’t want to write the same lines again and again. Aside from a brief moment in March 2020, where several companies were fairly valued and some even undervalued, we are back to previous levels again. To make it worse, we now even see dangerous signs of euphoria among retail investors. The stock market is extremely overvalued at this point in time. Period. And one of the best charts to underline my current view of the market is this chart published by FactSet, which is showing the forward P/E ratio over the last 10 years and especially the extreme
