- Top stocks: United Airlines (and airline stocks in general), Carnival, and Booking
- Higher risk investors can do their due diligence to see if the stocks are suitable investments for them
- Carnival pays a dividend but it can cut the dividend if things get really bad
I made this video, and I hope it gives a broader perspective on the investment landscape on top of the usual dividend ideas I give.
In late January, in my video “Will the Stock Market Crash in 2020?”, I essentially said that any negative impact on the economy can “drag the market down to its normal valuation of about 17 times earnings or even lower.”
It’s actually happening.
Stock Market Crash 2020?!
The 2020 stock market crash came fast and furious! In about a week, the U.S. stock market has corrected 12%, while the Canadian stock market has fallen 9%.
Actually, I wouldn’t call this a stock market crash, yet. To me, a market crash is when the market falls 30-50%.
I know it’s scary to think that you can lose half of the value of your stock portfolio, but this has happened before and can happen again.
I’d visualize my stocks being cut in half periodically so that I won’t panic when it happens.
It’s a Normal Market Correction So Far
From time to time, it’s normal for stocks to correct 5-15% for whatever reason that may appear in news headlines.
Frankly, I welcome the decline as it was getting harder and harder to deploy money into the stock market. In case you haven’t noticed, the S&P 500, which is a proxy for the U.S. stock market, delivered total returns of 31.5% in 2019, which was more than 3 times its long-term average returns of 10%.
So, it’s only natural that the market is giving some of the gains back in a correction.Read More