No Crystal Ball
I try not to make stock predictions. I don’t have a crystal ball and if I did I’d most definitely be a billionaire by now. But I see traders/investors making bold predictions on Facebook investing groups. Stop it! Chances are these people are just saying schtuff and when they are proven wrong they disappear with their tails between their legs. It’s best to study the fundamentals and do the technical analysis to make educated choices.
No predictions. That that becomes gambling, and we don’t gamble on the stock market. At least I don’t.
August Recap 2020
August 2020, according to the experts, has been the best August since 1984. Yes, it’s been a crazy month, with the pandemic still unfolding, and BLM protests and Civil Rights marches to fight systemic racism in our country.
It’s ironic that the stock market is doing so well right now, yet people are still unemployed in the millions, small businesses are struggling or already have gone under. Quarantining, staying at home, and social distancing have changed the face of our everyday lives, and we are still awaiting some cure or vaccine for this Covid-19.
Apple and Tesla Stock Splits
One August 31st, Apple and Tesla did stock splits (4 for 1, and 5 for 1, respectively). And heading into September, AAPL is still surging while TSLA has dipped a bit, after both stocks surging at month’s end.
Zoom Quadrupled its Revenue
The biggest surprise was that Zoom (ZM) had quadrupled its revenue in the 2nd Quarter 2020, and the stock has surged from around $230 a share about a week ago, to a high of $478 a share. Right now I see it’s currently holding at $455 a share. Huge, incredible leap for a stock!
What’s in Store for September 2020?
The one scary thing is that the stock market pundits (including Warren Buffett) warn of an impending market crash again.
I don’t know… I’m trying to read the technical analysis and the candlesticks. Everything is looking spiffy right now but usually the stock market does make a correction especially after many stocks hit all-time highs.
Once again, the old adage, “Hope for the best, prepare for the worst”, comes to mind.
To circumvent any disaster on the stock market, it’s best to sell a few winners and keep more cash than usual. Because if the markets do crash, you’ll have the funds to buy stocks at the bargain basement prices. Just be forewarned. The stock market does make a market correction sooner or later and enters bear territory. And, while many are enjoying their high performing stocks, just keep in mind that stocks ebb and flow like the ocean tides. But, historically speaking, the stock market has always rebounded and always surpassed all-time highs to new ones.
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