Dear Readers, The coronavirus has wreaked a great deal of havoc since we last connected. The 11-year bull market came to an abrupt, unceremonious end. The Dow Jones Industrial Average slogged through its worst week since 2008. And every Wall Street firm under the sun called for an immediate recession as the global economy ground to a near-standstill. Our Investing team has been assessing the sudden wreckage, and our findings should be able to help you navigate some historically difficult times in markets. To make matters as straightforward as possible, this edition of Investing Insider has been divided into three distinct sections: (1) expert commentary, (2) macro outlook, (3) single-stock picks. Without further ado: Expert commentary 'We have not had a single loser': An investment chief who's earned up to 90% per trade during the coronavirus crash breaks down his strategy — and explains why it will profit through the election James McDonald, the founder of the Los Angeles-based firm Hercules Investments, has profited from the market's recent volatility using stock index options. He explains his approach in detail. READ MORE HERE >> An investment chief whose ETF has surged 24% during the coronavirus meltdown details his strategy for profiting during stock-market crashes Meb Faber, the CEO and chief investment officer of Cambria Investment Management, told Business Insider how he picked the assets that are now delivering their diversification benefits. READ MORE HERE >> Dan Rasmussen studied every financial crisis back to 1970. He shares exactly where his data says to put your money as markets plunge — and explains why 'now is a very good buying opportunity' The founder and portfolio manager at Verdad Advisers says he's found the perfect confluence of asset classes and factors to overweight during a time of financial panic. READ MORE HERE >> 4 energy experts break down what's ahead for an oil market in free fall — including stocks to buy and strategies to deploy In interviews with Business Insider and in recent notes to clients, energy-sector analysts and strategists broke down where they think investors should put fresh money to work in the space. READ MORE HERE >> 'One of the buying opportunities of a lifetime': Here's why Wharton professor Jeremy Siegel thinks the coronavirus-driven stock slump is laying the foundation for a massive bounce back Siegel points to the strength of the US economy before the recent market plunge and says if the US market ultimately follows China's, a sharp reversal may be in order. READ MORE HERE >> Macro outlook Goldman Sachs studied every bear market in stocks since 1835 — and concluded that 3 red flags make this coronavirus-driven one unlike any other in history US stocks plunged into their 28th bear market since 1835 on Thursday, ending a record bull run. Goldman classified the episode as an "event-driven" bear market caused by the new coronavirus. READ MORE HERE >> Bank of America lays out the 6 things that need to happen for the stock-market crash to truly end — and warns only 4 have occurred so far
They also argue that one variable that's not on the checklist — new cases of COVID-19 — is possibly the most important caveat to consider. READ MORE HERE >> A popular trading strategy that preserves hedge funds during stock-market crashes just failed — and Morgan Stanley warns it could change investing as we know it Risk parity, an investing strategy that allocates to different asset classes based on their levels of volatility, was once hailed as "nirvana" by Morgan Stanley's equities chief. But it's taken a severe beating lately. READ MORE HERE >> Single-stock picks 'Practically stealing': Jefferies mapped out dozens of cheap stocks worth owning in a coronavirus-stricken market. Here are 10 of their top picks. BANK OF AMERICA: Buy these 13 cheap stocks that could skyrocket 35% or more — because they're shielded from a recession and a sharp China slowdown GOLDMAN SACHS: Buy these 15 cheap, cash-rich stocks in order to dominate the market, even as we barrel towards recession BANK OF AMERICA: Buy these 20 cash-rich stocks that pay fat dividends and provide the best long-term protection against market crashes GOLDMAN SACHS: Buy these 13 stocks poised to dominate in a market where everyone is paralyzed by fear |