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Recessions are where wealth is made - where are the opportunities? have we missed it?

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  • 24-08-2020 8:53pm
    #1
    CertifiedSimp
    Site Banned Posts: 280 ✭✭


    They say recessions are where real wealth is made. Is that true only for the likes of Bezos and Mike Ashley or are there some for the common man?

    Or have we missed it from the lows of March? Back into ATH territory for some of the major indices...was that couple month period the only time to strike?

    Property hasn't fallen, but will it in a year?

    Or is this a different recession altogether where the opportunities of old don't exist due to the nature of the recession with massive supports propping up everyone?


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    #2
    Timmaay
    Registered Users Posts: 11,394 ✭✭✭✭Timmaay


    For the us stock market this has been a pure v recovery. However mostly driven by the central banks printing money to keep up liquidity, that combined with people spending less money on holidays or anything at all really during lockdown has left many with more disposal income that they have decided to invest in the stock market. Who knows how far this current rally will go, that's very hard to predict, could we see the s&p drive on towards 3500/3600+, definitely possible, however at some stage the party will have to end and who knows what sort of pullback will occur then.

    Shares like airlines, energy, travel are still at a heavy discount from pre corona levels, and longer term probably good value to be had if you just want to buy and forget about them, how long it will take them to recover is hard to tell though, and we could well have several airlines etc fold across the next few years.


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    #3
    Eduard Khil
    Registered Users Posts: 796 ✭✭✭Eduard Khil


    Recession starts when the dust settles thinking of stockpiles now will leave you with a pile of redundant trinkets or worthless paper, watch the trends and developments as this will be a productivity related recession rather than a wealth depreciation induced. There will be money available but only once we have emerged and overcome this passage of time


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    #4
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,988 Mod ✭✭✭✭Jim2007


    CertifiedSimp wrote: »
    They say recessions are where real wealth is made.

    Well they are not obviously looking that the statistics then.... the biggest capital losses occur in the early part of a recession as people jump on board expecting to be ready for the next ride.
    CertifiedSimp wrote: »
    Bezos and Mike Ashley

    They are not investors though, they run businesses....
    CertifiedSimp wrote: »
    or are there some for the common man

    The best way for the common man or woman for that matter is the same as it always has been. Either dollar cost average or value investing over the long run.


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    #5
    CertifiedSimp
    Site Banned Posts: 280 ✭✭CertifiedSimp


    Jim2007 wrote: »
    Well they are not obviously looking that the statistics then.... the biggest capital losses occur in the early part of a recession as people jump on board expecting to be ready for the next ride.



    They are not investors though, they run businesses....



    The best way for the common man or woman for that matter is the same as it always has been. Either dollar cost average or value investing over the long run.

    Mike Ashley is an investor when he picks up distressed assets from DW gyms.


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    #6
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,988 Mod ✭✭✭✭Jim2007


    CertifiedSimp wrote: »
    Mike Ashley is an investor when he picks up distressed assets from DW gyms.

    Well if that is your definition, then off you go and pick up some distressed assets....

    https://www.valuelinepro.com/value-line-special-situations


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