E TalkMarkets Tuesday Talk: May Market Maze

It's the last Tuesday in May and the start of a short trading week to end out the month, and what the week will look like is anyone's guess. With US-China tensions rising, and economies re-opening a mix of good and bad news is sure to send the charts up and down. Still, May thus far seems to have shown some signs of reduced volatility as the month to date chart for the Dow Jones shows:

The lowest day for the Dow m-t-d being May 13 with a close in the 23,200 range, other than that the level seems to be close to 24,000. Not the almost 30,000 level where the Dow was at the beginning of the year, but a good level above the March 23 "crash" low of 18,591.

With a nod to this seemingly lower volatility here's a look at what some TalkMarkets contributors have to say about the road ahead and some thoughts on where to invest and how investing is changing in the post "corona crash" world.

Steven Saville  writes in, There Will Be A ‘V’ Recovery…Sort Of , that the second half of the year will show the economy rebounding and the initial rebound will look like a "V" in the charts, but that this initial recovery won't be sustainable, as getting from more than 20% unemployment back to pre-pandemic levels of less than 4% in the U.S. will take some time.

"There will be a ‘V’ shaped recovery, but due to the destruction of real wealth stemming from the lockdowns the rising part of the V is bound to be much shorter than the declining part of the V. This will lead to a general realization that life for the majority of people will be far more difficult in the future than it was over the preceding few years."

Charles Sizemore looks for where to invest to get the best yields in, Where To Find Yield Today, and finds opportunities in Real Estate Investment Trusts, Business Development companies and pipelines. With interest rates hovering at zero it is a good time to be a borrower, but an investor looking for good returns has his or her work cut out for them. Here are some of his thoughts and picks.

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Anthony Varrell 1 month ago Member's comment

Good roundup.