Monday, April 27, 2020

All the markets are in the sky

According to an stock market analyst, “12 months from now, no one will regret buying stocks,” which are “now at the lowest levels since 2016.” I agree that stocks are extremely oversold despite their sharp rebound in the last few days.

However, I am not so sure that stocks will be higher in twelve months. Nobody regretted not buying the Nikkei Average after the initial 30% decline in 1990 because the Japanese market continued the downtrend for much longer – admittedly with intermediate powerful bear market rallies. It finally bottomed out in 2008.