Echoing Tepper

David Tepper is without question one of the most successful investors in the world today. When he speaks it is wise to listen. On CNBC this morning he stated he was nibbling at certain stocks including Amazon, Micron Technology and other tech names. He also feels the markets could drop an additional 10-15% before bottoming. More importantly he indicated that investors need to be very selective here. Some industries will change significantly because of the COVID - 19 pandemic. Some companies will not survive.

Because markets move when David Tepper speaks, who are we at Trending Trades to argue with this advice? There are a number of interesting longer term trades setting up. Various stocks have fallen dramatically, but unless you believe this is truly the end of the world as we know it, you need to look at what companies can recover. So if you feel that at some point we are going to travel again, Boeing will probably make at least a partial comeback; Hyatt Hotels will receive guests, people will eventually return to their gyms and restaurants, houses and cars will be bought and banks will lend money.

We may act differently around each other in the future, but keep this in mind: over 25% of the world's population was infected by the Spanish Flu of 1918; between 50 and 100 million people died worldwide; yet we still lived the only lives we've known over the last 101 years. People got married, raised families, worked, created businesses, bought cars, bought houses, took vacations and so much more. Something new is around the corner and that's scary, but it can also be very positive. Look for the opportunities.