A few thoughts on today's markets.
This is a thin market that is getting harder and harder to figure out for value investors.Bubbles are all over, Beyond Meats is one yes? This is a bubble period.Bubbles in Netflix at $350? who knows, but we think so and anyone who can make a case for say $500 or $150 are both just guessing I feel.The real point is it is harder and harder to value stocks in today's world without talking huge risk I feel.Do your homework and load on big sell-offs of 25% or more should work it always has other than 2009. Especially if you buy a big basket of high dividend stocks.
One for example like the Bank Of Nova Scotia ( $51.50 BNS), BNS has paid a huge dividend forever and is trading at a P/E of 8. This is a great example of a liquid safe stock to buy in the next big sell-off as it is near the lows already.
We like banks trading under real book or ( cash) that are worth 1.5 times book, simple math is all you need to do this type of investing, along with honest bankers. If you are buying things like MSFT and AAPL at today's prices you are just guessing!This thin trading and volatility could provide some great buying points very soon in select names not followed by wall street.
Bottom line is if you are long a bunch of names that are not dead cheap today, you better have a bunch of "short" hedges on to balance any big downturn that may come. Don't say I didn't warn you.
Just look how many companies are coming public with no earnings at all, or even a future plan for earnings yet the market Caps are in the Billions, yes that is a Bubble any way you slice it.