The Shayne Heffernan Idea
Sell in May and Go Away? Maybe As Countries reopen in May the market will rally, But, this may not be the time to buy, yes if you buy here long term you will make money but if you are looking for the trades of the decade hold your horses until July.
Coronavirus might not let you go away but the extra money you make on the trade might pay for a Christmas holiday.
The earnings reports coming out in July will be the ugliest, the ones we are seeing now remember were started in February with Lawyers and Auditors dicking around with them endlessly to justify their existence, the same overly cautious bunch will be starting on the July earnings and outlooks now, they will be horrendous.
July should see a strong sell off, that is the one you want to save your cash for buying long term assets.
If you are one of the many looking for bargains in other non-trading assets like real estate, boats, cars July will be the ideal time as well.
The good Samaritan mood sweeping the banks will be over, they will come crashing down on those poor unfortunates a few payments behind and real assets will be for sale at a discount.
The Big Rally
Christmas 2020 will be a substantial rally, the mood will be victorious, the hopes will be on the new year and pent up demand will be hitting the market in full swing.
In the final weeks of 1999 and 2007, stock prices rose rapidly but only to be followed by bear markets so stay on your toes, if we get the wobbles in the New Year take some profits.