Earnings season is in full force and we saw some really awesome reports from our favorite stocks that are widely held by my wealth management clients.
Facebook (FB) jumped 9% on Thursday after reporting results that beat expectations.
Alphabet (GOOG) was up 10% after reporting a great quarter of its own.
Amazon (AMZN) fell on Friday but shares are still up 19% in the last month.
Netflix (NFLX) is up 16% in the last three months while the overall market is down.
Owning these stocks has been great for shareholders and helped them mitigate losses in the broader stock market – where some stocks are still down more than 50% from the 52-week.
The strong earnings have driven global stocks higher.
The S&P 500 (SPY) is now up 30% from the recent low – but still trading 17% below the 52-week high. Take a look below.
With a solid rebound in hand, now the key question becomes: what next?
Investors want to know if these gains are going to hold, or will stocks re test the low?
Here’s my take.
In the short run I do expect to see some short-term weakness because traders and shorter-term investors will be looking to lock in some quick profits and re position.
But I do not expect stocks to make a new low in the next few weeks and months.
I think stocks have made a strong bottom.
- I think the global tide has shifted against covid-19.
- I think the US economy will see a strong snap back in the second half of 2020.
My plan for deploying cash into the stock market is simple.
I am looking to deploy cash on any weakness. Buying dips. Buying weakness.
I think there is a very good chance that stocks are going to be back to the all-time high by the end of the year.
In the long run I think this will turn out to be a great place to invest.
I will be back in a few days with another update. Have a great week!