The billionaire behind the headline I saw on the internet this past week is John Paulson. And his argument is that with pent up demand, a vaccine, record Government spending on a recovery, and the spending habits of his kids, we will see stocks in general boom.
Of course journalists want your clicks and so ‘sex up’ the headline. The fact remains, whether I look at IMF data or McKinsey, Goldman Sachs, or other sources, people are positive about 2021 and the stock markets.
Yes I also know according to the Bank of England that 1.5 trillion pounds sits in UK accounts earning nothing. People are too scare to invest. Of course saving is good, but it does not give a return unless those savings are reinvested.
A 70 year old lady emailed me having read last week’s article and she is a role model of action. She asked if it is too late to buy Amazon? Well, I am not allowed to give individual stock advice.
And I would need to know how soon you may need the money considering age. For instance Microsoft and Amazon now well up on the year, did fall in February and March. Things fall. Even they fall. Stocks I happen to like balancing risk of falls with rewards include those Amazon, Microsoft, Paypal, Alphabet, Apple, Square, Costco, TechTarget.
So to anyones question given that the stock market is at all time highs – yes and it may drop, but I am not trying to time my entry into more stocks, I am holding for 12 months and reviewing.
By the way the data suggests in the first year of a presidency and also in the 12 months after a stock market record, returns are good.
What about UK companies. They’ve been underperforming as we know. Will they catch up post Brexit? I don’t do top-down. I do bottom up. Ie I look at the company not the country. It’s the company which has to be generating me returns. And I am not racist when picking stocks. I don’t care if the company is British or not.
