India Ward of COMPASS/The Allain Group offers a move-in-ready, 3-bedroom condo in a perfect location. The architectural design firm of Clark Green + Bek works with new owners to transform Doctor Sax House from a private home to a stunning boutique hotel. A year-end wrap-up of 2024 real estate sales has surprises. Plus, recent sales, a home-cooking recipe, and gardening columns.
The stock market is always going to have corrections. For me to say that we’re going to get a correction isn’t me pretending to say I am Nostradamus. Corrections happen all the time.
I also think that the pullback does double in size, but I’m not smart enough to time the starts and stops of corrections, so I tend to use them as opportunities to get more aggressive by reducing hedges, or getting cash invested, as opposed to selling investments.
The performance of small caps is more closely tied to the U.S. economy than large caps are, so with all 50 states in some form of reopening, there is potentially more growth for those companies while simultaneously having a greater defensive posture as they would be more insulated from a COVID-19 outbreak in another country.
However, as I’ve noted, due to the COVID-19 crisis, forecasting fundamentals is nearly impossible. When you don’t have access to fundamentals, you use technical analysis.
The Federal Reserve’s and the government’s massive and quick actions should stabilize what has been an economy in freefall, but we won’t escape a recession.
Whether we get to enjoy a rally, or even stabilization, the cure to the coronavirus - absent a vaccine - appears to be global governments pushing their respective economies into recession.
