30s stock market crash
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Yes, I am suggesting that a high-growth stock could help you through the next recession. NFLX is trading at times trailing earnings and thus seems ripe for a plunge if you just look at it the wrong way. By its disruptive nature, Netflix has always been tagged as a dangerous stock to own.
That's true today, based on sky-high valuation ratios and a world full of head-to-head competitors. So, let's say you owned some Netflix stock at the start of Here's what happened over the following two years:. NFLX data by YCharts. The end of the world hardly bothered the digital video pioneer. It's fair to note that Netflix traded at just 30 times trailing earnings back then, of course. To that point, you should know that Netflix has been running on a nearly breakeven budget while building out a global network of streaming services.
That build-out is now complete, and management has promised to refocus on generating profits again. Netflix actually has a lot of control over this crazy valuation metric, which makes the stock look much riskier than it actually is. If you truly expect a big market crash someday soon, I would suggest building a Netflix position early and keep some powder dry for picking up additional shares on the cheap as the initial panic sets in. Again, see for examples of this. The first thing any stock investor needs to recognize is this: This is because the market isn't always driven by rationality, especially in a market crash, where millions of people can sell tens of billions of dollars in shares of excellent companies, simply because they are afraid of a market crash.
Real Estate Bubble: Canadian Housing Market Crash Coming in
The irony, of course, is that it's exactly their behavior -- selling in fear -- that can cause a market to crash, and keep it down for a long time. But if the market is crashing because of economic weakness, something that can cause stocks to say down for years at a time, investors who own shares of companies with less exposure to a weak economy can make for excellent long-term investments.
And Caretrust REIT is exactly this kind of company. Caretrust owns rehabilitation and senior housing facilities, an area where there is expected 30s stock market crash be steady, growing demand over the next plus years, as tens of millions of baby boomers reach retirement age. Since these facilities aren't a product of economic demand, but of medical necessity, owning a stake in Caretrust is a great way to offset the risk of too much exposure to economic recession while gaining exposure to a major trend with big implications in the retirement of the baby boomer make money raising chinchillas. At first blush, you might think I'm crazy for recommending a biotech stock, but stick with me for a minute, and I think you'll agree that owning a top-tier growth stock like this can make sense.
Since markets don't go up or down in a straight line, it stands to reason that stocks could drop after their big runs higher. However, stocks can climb further than pundits think, and the best growth stocks often lead post-drop recoveries.
Santander shares worth buying no one knows when a market drop or recovery might happen, I think investors ought to focus on owning great companies that market products untied to economic whims and whispers, and that's why I like Celgene.
The 30s stock market crash also markets the third-line multiple myeloma blockbuster drug Pomalyst and pancreatic cancer drug Abraxane. Later this year, Celgene could also win FDA approval of a new leukemia drug that it co-developed with Agios. The company also markets fast-growing psoriasis drug Otezla, and it hopes to file for FDA approval soon for a new multiple sclerosis medicine that, if approved, could provide considerable sales and profit upside.
Clearly, a lot is going right for this company, and I think that makes this stock a great one to own through good and bad times. Anders Bylund owns shares of Netflix. Jason Hall owns shares of CareTrust REIT and Netflix. Todd Campbell owns shares of Celgene.
His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Celgene and Netflix. The Motley Fool has a disclosure policy. Todd has been helping buy side portfolio managers as an independent researcher for over a decade.
InTodd founded E. Capital Markets, LLC, a research firm providing action oriented ideas to professional investors. Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login.
Stock Market Crash of Causes, Effects and Timeline | Stock Picks System
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