#46 - How to Play This Bull Market without getting Whiplash (June 2020)
In this episode we discuss strategies for taking advantage of the current bull market the Fed has created
- The realization that the Fed will actively try to prevent the market from falling to prevent fear from dominating the market (as shown on Mon)
- The market is likely to remain distorted which creates opportunities for investors
- How do we play this bull market while being cautious about the disconnect between prices and fundamentals?
- Debating investing in legacy business like Airlines and Theatres
STRATEGY
- PATIENCE! Keep your powder dry as it takes time for the market to re-adjust
- Thinking of investing like private placements with the ability to hold for 1-3 years if prices tanks
- Buying top tier companies like Green Thumb (GTI) with the understanding it may take a while to grow into the value
- Deploying cash selectively in overlooked names with good risk/reward
- How? Looking for small cap cannabis companies which have good fundamentals but have lagged in share price
- Liberty Health (LHS) as an example
- Comparing Canada to the US
LOOKOUT
- Don't chase high prices on low volume
- Emotional investors are back! Watch out for them