One of the hallmarks of the buy on dips approach to investing that has been phenomenally successful over the past decade has been buying the big Friday dip.  According to Bespoke, over the last decade, buying the Friday dip has seen close to 78% rebounds on the following Monday and 88% bounce over the ensuing month.

And the gains have been significant.

Covod-19 Bounce in Perspective

The market is indicating higher this morning, although, the financial media is pounding the table hard to turn it lower. 

There are legitimate reasons to be worried about the increase on positive Covid-19 cases but there is also something to be said for the continued decline in deaths. 

Young adults are driving the increase in new cases, and while they are not impervious to the virus, their mortality rate is significantly better than older folks.  There will be an uptick in deaths, but I don’t think it will be anywhere near commensurate with uptick in cases – and that will become the story at some point.

Portfolio Approach

This morning we are adding a position to Technology and reducing Cash to 5%.