Is it a good time to invest?

Many of you know that I’m an active stock investor. My usual strategy is to purchase high quantities and only hold it for seconds or minutes. Sometimes I would invest longer term on more stable dividend stocks.

But the main question now on everyone’s mind is if it’s the right time to invest or will there be more pain to come?

My opinion is to invest short term (hold only seconds) because the bottom isn’t here yet. The recent rise in the markets is only because of the injection of stimulus money to citizens. Drop in crude oil pricing, failing retail/restaurant/entertainment/travel sector and the uncertainty of a cure/vaccine for covid-19 will cause the markets to fall in the coming weeks. Technical analysis shows it’s a setup for a head and shoulders chart pattern.

Relative safe sectors to invest short term now (As of April 25, 2020) would be pharmaceutical and tech. Those should be safe sectors for the month of May as well.

When infection saturation has peaked on the mid-west then that’s when we have to start monitoring the mortality rate and when that would peak as well.

When the curve starts dropping and flattening out then I would suggest in investing in military stocks. Why? Because many counties (China, Russia, USA) will start making power-plays.

But for the whole covid-19 period, I suggest only investing in companies that have large cash on hand to weather thru this infectious period. Companies like Microsoft, Amazon, Apple, Disney, Pfizer and American Express are relatively safe companies.

But for those that still want to invest without worrying the daily fluctuations then go for long term mutual funds.

And remember, invest only what you’re willing to lose. Investing in stocks is never a guarantee.