Is it time to dive back into the stock market? Answer: No. We have no idea where the bottom might fall
Recorded on April 4, 2020
On this weekly edition of New Business Paradigms, World Business Academy President Rinaldo Brutoco and Chief of Staff Kristy Jansen discuss the rapidly growing economic impacts of the public health shutdowns. The show addresses questions that the team have been fielding about how to stay a smart investor in this volatile economic climate. We also discuss the Small Business Administration loan program that launched last week as a part of the CARES act, review economic indicators and consider what a new federalism might look like. Rinaldo riffs on New York Governor Andrew Cuomo’s remarkable presence in the past few weeks, taking a powerful leadership role in the midst of the coronavirus epicenter. Governor Cuomo may become a leader of a state-based coordinated centralized purchasing program in the absence of federal leadership.
Rinaldo forecasts that unemployment could rise to over 20% in the worst-case scenario, a cautionary reason stay out of the stock market for the time being. He points out that unless you can see the bottom of the drop, it doesn’t make any sense to buy in. The show finishes with Rinaldo’s tips on how to pick the best companies to invest in (hint: the answer is management) and a small riff on applying for Small Business Administration loans.