This table shows our opinion on different stock markets worldwide.
Before going further it is important to mention that this is as of today.
As you can see we have totally different views on some markets.
European stock markets have been strongly impacted (obviously in a bad way) by the Covid-19. There are many reasons that explain why this happened, the main one being the consequences of the long European lock downs on the local economy.
One interesting fact is that we already viewed the US stock markets as being overvalued before the crisis. The US stock markets have suffered from the Covid-19 crisis but they quickly showed a rebound that we consider to be way too optimistic given the current economic crisis. Goldman Sachs has recently published a study in which they state that they believe that U.S. stocks are unlikely to make fresh lows. It is hard to go against Goldman Sachs but we stand firm on our advise: you should avoid buying US stocks at current valuation.
At Anh Thomas Investment, we are not day traders (in other words frequent trading activities) instead we are long term investors and we are pretty clear on one thing: long-term investors should avoid US stocks at current price level.
We believe that US stocks are too high and that the COvid-19 crisis is far to be finished at least in terms of its economic impacts.
Does this mean that an investor should invest in Real Estate instead of stocks right now? The answer is simple: No. Real Estate is certainly going to be harshly impacted because of the Covid-19 as well so be prudent. Right now, the best option is to wait and see. But you always be ready to invest. Things can happen fast. If new lows were to be reached in the stock markets, you will need to be ready to invest. Patience and readiness are two major qualities for an investor.
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