Investors have nowhere to hide — but here are some starting points

As you might suspect, I tweet like a conceptual magpie, collecting ideas, images from city life, as you’d imagine whatever. This post is repeating what I just tweeted, as well as a hat tip to my favorite aggregator of economic insights, Lev Brodovsky.

One of the joys of the Wall Street Journal is the near-daily collection of economic charts by Lev Brodovsky called the Daily Shot. I subscribe to the site’s email alert, which is the only ‘published’ thing in my inbox that I’m truly glad to see arrive.

Among today’s perhaps 80 charts, I’ve pulled out a handful which illustrates the current predicament of investors who have perhaps wisely cashed out of plummeting stocks, only to face the question, “what now?”

So, what is an investor to do?  Yesterday, I noted that the Rydex Inverse S&P 500 fund could be a good way to bet on mayhem.  But, for those with an appetite for risk or more optimistic outlooks, one of my Coronavirus holds has been KraneShares All China Health Care ETF. If any group of companies is about to become hyper-funded, its health innovation firms as China both stimulates its economy and invests aggressively in its own health care.

No one can be certain of what happens next in turbulent markets. But having a holding like RYURX that goes UP as the market plummets, can be a brilliant short-term holding. And if you believe China will drive global growth for another generation — investing in medical innovation there seems like a sector likely to have good tailwinds. Others will just hold dollars, or not sell falling equities and ride out the storm that has them far underwater as today begins.  Happy boating!

 

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