I have over 40% of my portfolio in cash and the recent volatility has me searching for the right opportunities. I am currently skeptical if the market has fully priced in the impact of the virus as I believe that things can only go back to ‘normal’ once a vaccine is developed and deployed which is unlikely to happen before the end of 2020. Looking at the current situation in Wuhan as businesses open up could give me insight into what the following months will look like
Given my long term holding period, I am not overly concerned with the day to day swings but rather picking a strong undervalued business that will realize its potential over the next couple of years. I am particularly interested in investing in businesses that will come out of the crisis with less competition. For example, many suspect that Neiman Marcus will enter bankruptcy. I wonder what this would mean for Nordstrom, given it can survive the crisis.
Based off of pure gut feelings, plenty of valuations for companies don’t seem right in the market. Using that gut feeling to bring me to proper investing opportunities is the goal.
