The only way to know for sure if this is a Dead Cat bounce is to wait and see what happens over the next two weeks. The problem with that is, if it isn't you will have already missed a great deal of the potential gains. This is why timing the bottom or top is virtually impossible, you can only know for sure in hindsight..
The DOW came off 15% at the peak of the drop, it put back on over 5% today, the S&P put on 4.6%. The TSX was off 12%, put back on 1.75% today. Some of the big blue chips that were down 8-9% gained back 3% today.
Right now you are buying at a 10-15% discount to a week ago. Yes there may be another 5-10% downside, but Coke for example gained 5% today alone. That made it a pretty good buy from this morning. The best you can do is Leg in the cash you are sitting on over time, and on top quality stocks.
Last edited by Dean2; 03-02-2020 at 03:59 PM.
|