“There are ‘tremendous opportunities’ in markets.” Larry Fink
To build wealth, it is advised that investors should take a long-term view of markets; and that they should take a long-term view in the way they manage their personal finances and investment portfolios. It is certain that the world will get through; and, the economy and markets will recover once the COVID-19 crisis has abated.
For investors who keep their focus on the long-term horizon, “there are tremendous opportunities to be had in today’s stock markets”, according to Blackrock’s Chairman and CEO Larry Fink. For many of Blackrock’s clients, “the recent sell-off created an attractive opportunity to rebalance into equities,” Fink said.
Take banks as an example, “the damage has already been done” to the industry according to most financial professionals and traders. Yet, the banks are in better condition financially than they were during the 2007-2009 financial crisis. Once the virus spread stalls and the economy returns to normal operation, the Fed will still be supporting the banking system.
Positive sign for comeback
“Don’t watch their lips, instead watch their feet.”
Extraordinary monetary stimulus measures by the Federal Reserve and fiscal stimulus measures by Congress and the White House have put a proverbial floor under the market in late March. As a result, many C-suite executives are buying up their own company’s stocks at a record pace, according to InsiderSource.
“Insiders have a 35+ year track record of buying on the type of extreme weakness experienced in Q1′20,” InsiderScore director of research Ben Silverman said in a note. “A dramatic increase in insider buying volume combined with dampened levels of insider selling has resulted in the generation of industry buy inflections – our strongest, quantitative macro signal – for the entire market.”
In his 2010 newsletter to Berkshire-Hathaway shareholders, Warren Buffett wrote: “When it’s raining gold, reach for a bucket, not a thimble.” Based on his vast and highly successful investing experience, he states that in period like the present, “Big opportunities come infrequently”.
- https://www.cnbc.com/2020/03/30/larry-fink-says-economy-will-recover-from-coronavirus.html?recirc=taboolainternal
- https://www.cnbc.com/2020/03/30/coronavirus-stock-market-jpmorgan-top-bank-stock-pick-for-trader.html?__twitter_impression=true&recirc=taboolainternal
- https://www.cnbc.com/2020/03/26/executives-are-buying-stock-in-droves-giving-a-strong-signal-that-the-comeback-is-for-real.html?recirc=taboolainternal
- https://www.cnbc.com/id/35616702