At the time of releasing this, the ASX200 is down 32% from it’s peak in February 2020, and the S&P500 in America is down 24.95%. Within these markets there have been many companies fall much further than that – some more than 70%.
It presents a good buying opportunity for those who are fortunate enough to have some cash to deploy into the markets, but the big question is what to buy? The economic impact of COVID-19 is likely to be significant, and the question we are asking ourselves is what companies are in a good position to survive this crisis, and then thrive afterwards?
In this episode, we look at two key elements that help us to answer this question.
Key Element #1: Strong Balance Sheet
Key Element #2: Stable Earnings
We unpack why it is important to have a strong balance sheet, what it actually means to have one, and where you need to look to find this information.
We also share a number of stocks that are on our watchlist during this time, and companies that we believe will not only survive this period, but thrive when it is all over.
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