Mr Herbert Hoover says Now is the time to buy! He was right. Is now the time to buy? I think so.
"The Fed gave up on bazookas, skipped helicopters and went straight for B-52 Stratofortress Bombers to carpet-bomb the financial markets with cash," Ed Yardeni, president of Yardeni Research, wrote in a note to clients last week. "The immediate reaction of the financial markets was: 'It's raining money! Hallelujah! It's raining money!'"
World economy is suffering with this corona closure. The US unemployment rate spiked to 14.7% in April, the highest since the Great Depression. The same in Israel. How can be such a disconnect between the stock market and the real economy? This question occupied my mind for a time, till I understood that the stock exchange is not the mirror of the real economy.
Its components, which include Microsoft (MSFT), Apple (AAPL) and Chevron (CVX), are industry leaders that generally have the financial resources to ride out the storm. Some of them, like Amazon (AMZN), are even benefiting from the disruption caused by the crisis.
Now is the time to buy!
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