My grandmother gave each of us two gold coins in our teenage years.
She cautioned us to sell only when we needed too.
This week, I sold my gold coins to buy stocks!
Yep, that's right, I am buying into fear, uncertainty, and the historical precedent that we will rise and rebuild. My current take on this turmoil is that buying stocks on sale could be a historic opportunity.
Please remember this: Every single recession, including the 1930s, was a structural issue, leading to corporate and economic disconnect, then public panic. The current phenomenon is public panic & discord, leading to stock market volatility. It is not a structural issue; it's an event.
The Federal Reserve and the Whitehouse work double to time to ensure structural holds. Process the 15 Trillion the Federal Reserve has injected, zero interest rates, and 700 billion in QE. Not to mention the IMF 1 Trillion being formed. We need good news from the containment measures and fiscal stimulus. We could rally back aggressively in less than two weeks when the positive news begins to break.
The Fibonacci 50% retracement, an index used by seasoned professionals, puts the S&P 500 at 2795.50. In my opinion, this is a conservative and achievable number in short order. A 61% Fibonacci puts us at 2935. In translation, the S&P 500 on March 24 at 10:00 am. would be a 17.04% move up, and 2935 would be a 22.9% move up; that's what the retracement tool indicates.
In addition to historical benchmark data, we have Macroeconomic tailwinds on our side.
1- Gas at historic lows
2- mortgage rates falling
3- business loans are easy to get and very cheap.
4- possible 2 trillion-dollar relief spending bill
5- most notably, NEVER FORGET THE FUNCTION OF THE FEDERAL RESERVE.
They can print money and do whatever it takes to stabilize our markets and economy. I will contact everyone individually based on their goals to discuss what to do. In summary, Positive thinking leads to positive outcomes. I know that's not easy this month. I feel it, too. Try to find three things every day that are positive and move forward.
My Three today:
God, Family,
And all of you
Thank you for believing in me. All my best
Christopher Lakian
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