April 24, 2020
The CARES Act calmed investors’ nerves in recent weeks, enabling the market to rally hard from its March lows. But I’d be remiss if I didn’t caution that — even as the historically large stimulus package helped avert absolute disaster — it remains to be seen whether that rally is sustainable in the near term as the impending corporate earnings season gives investors a clearer picture of the economic damage done by the pandemic.
Call me a skeptic, but I can’t help but wonder at whether the CARES Act as it stands will be enough, or if the economy will continue to require additional follow-on aid to bridge the gap until we see more tangible signs of a true recovery.
Regardless, I think investors would do well to have some cash at the ready in order to take advantage of the opportunities our team spends every waking moment to find. At the very least, continue to dollar-cost average into the high-quality stocks you’d like to add as you build your portfolio, little by little, month after month.
And remember, our May recommendations are coming up in less than a week, which should help keep your pond of investment ideas well-stocked.
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