Warren Buffet Must Be Salivating

Tale of the Tape

This was the worst week in more than 10 years for the S&P 500 which fell 11.5% over the 5 sessions. It was historic and will be remembered. Not only did stocks get crushed but treasury bond yields made all-time lows (see below), energy fell 16%, financials fell 13%, tech fell 11% all amidst a burgeoning global coronavirus panic.

Few are prepared for this kind of stuff and even those who are must be exhausted. 

We rarely offer advice in this space but are going to take a moment to do so here. Take the weekend to rest, spend time with those you care about, count blessings, and refresh. Next week will require your best.

S&P 5002,954-0.82%
Nasdaq8,567+0.01%
Russell 20001,476-1.43%
Dow Jones25,409-1.39%

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WOW.

The 10-year treasury continues to get crushed like cheap beer at a frat party. No one knows what this means. We’re mesmerized. Here’s the fresh monthly candlestick chart over 10 years. It’s something… 

A Quick Note to Stock Market Newbies

If you are new to the stock market and have never been involved when it’s falling the way it did this week, this message is for you. This lunacy happens periodically (the last time being in December of 2018) and as long as people are involved with markets it will continue to happen on occasion. It never gets easy or comfortable for most investors. The world is not ending and if you are young and dollar-cost averaging, you might even welcome lower prices. Patience.

#CORONA Index

We created the #CORONA Index to track coronavirus related stocks frequently mentioned on Stocktwits. Over time, it will depict their collective performance. Here’s some details.

The index includes:
$GILD
$LAKE
$CLX
$MRNA
$ZM

The index is price-weighted.

Feel free to follow our #CORONA dashboard on Koyfin.

Here’s the weekly chart of the index:

Here’s the daily chart of the index:

Warren Buffet Must Be Salivating

Warren Buffett has $128B in cash. During a week like this, the Oracle must be licking his chops getting ready to put that cash to use. We imagine him and Charlie Munger calmly doing their due diligence and refining a shortlist of names of companies that generate cash trading at discounts 10-20% from a week ago. 

Michelle Meyer, Bank of America

$SPCE Bounced Back 

The most popular stock on Robinhood got bought back up today, closing up 12%. Sentiment on Stocktwits fell while the stock jumped. Interesting. 🤨

Really People…?

Links that Don’t Suck

How Does the Stock Market Bottom?

The AlphaMind Podcast: Paul Wallace: From Air Force Fighter Controller to Trader
Jay Woods, NYSE Executive Floor Governor, End of Week Market Recap