Molson Hart

Probably stupid to tweet this, and I do so with suitable humility knowing full well I could be totally wrong (no one really knows), but this really does feel like the bottom (for markets; not the economy/corona spread). 1/n

I’ve looked at a lot of stocks lately, and while many are dirt cheap, some of the higher quality/growth names are still trading at EV/Sales or other measure above their long term averages. I think these could still sell off.

Could do, but as ive noted you also have record low bond yields, more QE and a lot of cash on sidelines. Stocks will continue to fall while people are scared, but when confidence stabilises/returns, the above will matter a lot to where valuations settle out.

What if there’s a shortage of liquidity. Many industries have no revenue. They need to generate cash. Selling equities is one way to do that? Don’t know how significant a portion of the market that is. I’ve advised my small business friends to generate cash ASAP if they got debt.

Since the GFC, most large corporates manage their finances such that they have ample liquidity at least 12 months out, including committed bank lines/revolvers. A lot of funding is long term also these dahs given permissible debt markets in recent years. So wouldnt overest risk.