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  • Grant Trimble

A Fire and the Inevitable Fire Sale

The Great Companies in America and the World are on sale. Indeed-with the S&P 500 currently down 27% from its previous all-time high-they’re enjoying markdowns which you historically don’t see more often than about one year in five, on average.

Now, you don’t get fire sale prices unless there’s a fire. And the current economic/financial situation is, by some measures, a pretty big fire.

But we always have a choice. We can focus on the fire itself-financial media, shrieking about Armageddon, are always happy to help us do that. Or we can focus on the sale prices, and look ahead to better days which have historically always come next.

I cannot encourage you too strongly to begin focusing on the sale prices, as my clients and I are doing.

I’m certainly not predicting when and where the sale will end – that is, where the market for the shares of the Great Companies will bottom. (I can and do predict that if you wait to be sure the bottom is in, you’ll have already missed it.)

There are any number of sensible strategies for shopping the sale racks before the crowd floods back into the store. I would be delighted to show you a couple-obviously, without cost or obligation.

As the very least, I’d ask you to please make a note of this: as I wrote to you, the S&P 500 is at 2476 (close of business March 25, 2020). And, as I indicated earlier, that’s down 27% from its previous all-time high.

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