Recognizing the dips (IM 585)

Well, there is a possibility to recognize the dips in the stock market everyday, but it doesn’t happens all the time to most of the people. Long term investor are very clear about this as they follow the stock for a long time and they know its history.

And history repeats…

GE is now at all time low since 1990s. So are the Airlines and Cruise lines. But nobody is sure about the dips. It might become all time low or it might still go down. The challenge is that most of these companies might go bankrupt as the Coronavirus pandemic is hitting hard on economy and most of the companies are burning a lot of cash.

Warren Buffet dumped all the airlines stock earlier this month, which is huge. Nobody knows what impact this would bring.

But as always, there is a possibility to recognize the dips. And you got to follow the stock for the long time, you got to know its history and make a insight about how it reacts on it news and understand the investor sentiments. That’s very crucial.

 

Leave a Reply

Your email address will not be published. Required fields are marked *