T Nation

The Investing Thread (Coronavirus Edition)

We get 3-4 opportunities like this in a lifetime. Stocks are 20-30% off highs, and will likely retreat another 10-20%. What strategies are you deploying to take advantage of this opportunity?

I’ll start.

  1. I’m half smart and half lucky with my current 401K position. I went half bond half cash stable fund about 6 weeks ago. Im down less than 1% through this sell off. I plan to start metering back into stock funds 10-20% per week very soon. Potentially next week depending on news releases this week.

  2. My fidelity account. I started building my positions last week, and plan to continue buying to lower my cost basis as we work through this sell off. I’m buying Disney, Delta, American Air, Royal Caribbean (I like to always carry a high risk/high reward stock, this is my one currently), Martin Marietta, Vulcan Materials, Kinder Morgan, Caterpillar, Microsoft.

I’d like to know what people think about the banks. Which you prefer and why.

Other picks? Tesla?!?

I’m trying to take this slow, as I’ve only deployed about 30% of my cash. But with some of these deals, it’s hard to hold back. Airlines are sure bets. Trump has already told them they will not fail. People will resume flying. Want to double your money in a relatively short time frame??? 2 years and you got it.

I’m a long play guy, so I’m literally afraid of nothing at this point.

What’s your game plan?!?!

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I haven’t look into wallstreet style investing but it’s safe to say cryptocurrency and futures investors will probably greatly profit in the future from here.

Bill Gates has also stepped off the table for Microsoft and I have a feeling that news may cause some fear sell in affected shares but in the end some profits can be found there. You may see it dip a little more through the week

I haven’t researched much into anything to specific but it may not hurt to find someone who’s covid focused on the medical research side. LCH group may be good as well

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I just bought Delta, carnival, halliburton, Norwegian cruise. I am going to buy additional stocks in oil, air line, and cruise line tomorrow. I still am putting money into index funds (I’ve been maxing out 401k for a while now, so I’ve really taken a bath these last couple weeks). I plan on putting 5-10k into single stocks since they are so cheap.

I’m trying to be greedy with all the fear going around. Probably Buffet’s best advice.

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Yeah, oil is another one that’s obviously taken a beating. GREAT yields/dividends too. What are you thinking, Exxon? Chevron, BP, ConocoPhillips? All are down 50-60%. Mayhem.

Looks like tomorrow’s probably going to be a bath. Futures down 1,000 even after more fed pump.

I’ll try to diversify with a bunch of oil stocks that have dropped a bunch. Cruise lines are decimated. I bought Norwegian at $11. It has averaged mid 40s for the last couple years. I’ll probably try to buy about 10 different stocks.

I’m going to try running a tight ship, and keep buying until it is not a discount sale.

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A couple thoughts having traded for quite some time:

The impact of this virus shouldn’t be discounted especially in light of the markets reaction to this evening’s rate cut. The Fed has put themselves in a very bad position by dropping FF to 0bp.

Right now, consumer staples are safe (think Johnson and Johnson - everyone will always need band-aids) but consumer discretionary spending is going to be negatively impacted for the next 9-12 months.

You’ll be able to make money scalping TSLA and the airlines and cruise ships but once the prices start to approach their pre-covid prices it going to be dead money for a prolonged amount of time.

Long-term winners are going to be those that profit from the structural changes that will take place. ZM has already had it’s big move, but Slack and Grub-hub are getting hit. Commercial real estate will continue to get hit both as enterprise realizes how much money they can save by having people work from home as well as retail lease defaults.

I guess the million dollar question is, how is this going to change everyone’s day-to-day and what will people do for recreation if some percentage stays away from large gatherings? Smoke pot? Car camping? Virtual 5ks? Peloton?

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So KY and Astroglide are solid buys at this point?

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I’ve been buying oil and airlines. Holding Oxy and xom as well as American Airlines. I’m holding some crypto too.

I’ve also been buying up 3 x leveraged inverse of oil throughout the week.

On Friday, I bought quite a bit of vxx.

I’m not going to pretend like I didn’t lose a lot of money in the last two weeks, but I’m slowly making it back with volatility. Fortunately, I’ve been sitting on quite a bit of cash waiting for a pullback.

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Similar thinking here and largely what others have echoed. I was just starting my career last time shit hit the fan so this is my first real investing opportunity along the lines of getting in super cheap.

I had some pulled back for the inevitable pullback to make a move like this. Obviously I didn’t think it would be this early but sorta hard to financially plan on a global virus. I’m hitting airlines hard. Only difficult thing now is timing as who knows where the bottom is.

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I would say now that the fed rate is 0,
It’s probably a good time to start a mini purchase on stable yielding stocks or turnarounds. Cruises and airlines will pop after this virus goes down.

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This is helpful guys. Thanks. I’m young (20) and have a small amount of cash that I’d like to do something with. I’ve been wanting to get started in investing for a while, but never really known how. Don’t want to say that I’m happy the world is panicking, but it seems to be allowing me an “in.”

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I’d invest in Blizzard. World of Warcraft will probably have a lot of people returning.

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As an update, today I bought Royal Caribbean, Marathon, and American Airlines. Sticking with air lines, cruise lines and oil. A bit more diverse in companies, but still in only those three areas.

We will see what the market has to come. I plan on buying a bit at a time, while running a tight ship and investing what I can.

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Thanks.

I reinforced my American Airlines and Delta positions.

Also got into Boeing😮 took a complete bath this morning. I know they are leveraged to the gill and tapping all their lines, but I’m willing to gamble on them.

Bought BP too.

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All good choices. Hard to go wrong in those sectors. It seems like the Federal Government is unable to sway the market much. I am thinking that things will stay down for a while now. I think almost anything you buy that is a half what it was a month ago should be profitable long term. If you get in at 1/4 price, you should be golden.

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Doubled down on Boeing when it tanked again in the final hour. Lowered cost basis $5.

Today was crazy.

Our AAL stock surged 11.25%! Buffett buy himself an airline???:grinning::grinning:

Still got 50% of my investable cash.

Market down another 13% today, time to start buying.

Stay out of oil and energy as there are fundamental issues there in addition to Covid-19.

As soon as there’s the slightest glimmer that the second derivative of infection rate is slowing, 100% of your investable assets should be in the stocks of your choosing.

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Thank you for sharing.

I don’t know, I kind of like where oil is. I know there’s significant issues surrounding the industry, but you don’t think that’s priced in significantly at this point? 60-70% off 52 week highs!

I bought XLE energy fund also today. I’m so diversified at this point. I’ll continue to dollar cost average my way down to the bottom, or until I run out of cash.

There’s going to be a bounce so it’s not a question of whether energy goes up but whether or not they outperform other assets that are also going up. I think energy has a place in every portfolio so this is a great time to buy.

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What do you all think will be the first thing to bounce back?

Anyone taking the perspective of investing in markets that will recover first?