Can you just buy anything? Is that the deal?
No, because the stocks that anticipated this run have given you only so much room before the flippers come out. Better to avoid them.
What you want to do is think which down and out group is next. They went for the airlines. They went for the cruise ships - you can still buy Norwegian (NCLH) which is doing really well - and now it's the autos. I really like the autos here and the companies that make parts for the autos. It's not a lay-up; we know this quarter is not good.
But we also know that the quarters for everything that has run are going to be terrible. Then why autos? The virus. The CDC doesn't want car pooling. We don't want public transit.
That means buying a car.
I know that Hertz (HTZ) has many to sell. I know that used cars abound.
However, China's back on line, Europe is making a comeback. We will not be far behind. In fact I think the next bit of good news you will hear about the economy is our domestic auto build. People will still go to work. They just won't carpool and they won't take the train.
They will drive.
I have a piece about the autos in Action Alerts PLUS coming to get more specific. I just think it's the next place to go.