There are 70 companies in the S&P 500 information technology sector. However, the sector excludes several companies that the typical investor would consider technology players. So we added social-media companies, video-game developers and internet-services companies to bring our “technology” list up to 80 companies.
I don’t think there’s an investor out there that would like to know where the stock market is going. Has it hit bottom, and if not, when will it? Will the market then come back fast or slow?
In short, no one really knows. But Ben Carson over at “A Wealth of Common Sense” has a pretty good theory.
Basically, the market has matured since the great depression. And we have come to a point where an aggressive fed has taken some of the risks out of the market by playing a larger role in the economy and management of the financial system, and in turn, assets.
There’s a lot to be said of the government preparation and responsiveness to coronavirus. But, it seems the fed is doing all it can to shore up the economy. And it’s safe to say more help is coming.
Warren Buffett’s Berkshire Hathaway has sure taken a beating in the past couple of months. Berkshire Hathaway’s (NYSE:BRK.A) has lost about $64 billion in value since the coronavirus crashed the bull market party. That’s 21% since YTD. No surprise since it has such a big stake in American Airlines (NASDAQ:AAL), Occidental Petroleum (NYSE:OXY) and Phillips 66 (NYSE:PSX).
But will Buffett not only survive this bear market as he has done before? Will Berkshire come out even stronger? Continue reading…