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we’re only just in the opening scenes of a global pandemic horror movie, and people are already bottom-fishing?
Does that prima facie sound like a good idea?


If that were the only information, you have a point.
But the biggest determinant of where you are is not how far you travelled this week, but where you started the week.
Stuff that was horribly overvalued is mostly still pretty overvalued.
Stuff that was already kinda cheap is now quite cheap.
Unless you can predict stock prices, it's never a bad time for bottom fishing for things that are cheap.

That wouldn't include the broad US market, nor a randomly selected stock within it.
However I see there are 15 stocks in the S&P 500 that fell more than 20% this week and are now at a P/E under 10 (based on unrevised current earnings rates).
Of those, average fall -24.0%, average current earnings yield equates to a P/E of 5.8.
Some of them will be disasters with terminal issues, but perhaps not all of them.
Hey, it might be worth having a glance. Berkshire owns 1.2bn worth of one of those 15.
Or maybe the three cruise lines in that group are oversold due to headlines.

Jim
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