I am hearing a lot of ‘Shoulda Coulda’s’ from my friends and people on Stocktwits.
That will happen when the markets drop 30-40 percent and bounce back like they have. Charlie Bilello has a great post looking at the economic data and admits to being dazed and confused.
I remember buying Zillow in March at $34 after it had dropped quickly from the 60’s because of COVID-19. The next day I bought some at $28. That same day it dropped to $20.
I was not freaked out, but I was confused. It did not seem possible and I stopped buying more.
A few days later it was $40. A couple of days later it was back to $30. Yesterday back over $60.
I sold at $40 and made a few bucks, but of course I have the ‘shoulda, coulda’s’.
Between March and May the monthly bars had Zillow at an all-time high, an all-time low and back at all-time highs.
Here is the chart:
That move took the company from $13 billion to $4 billion to $13 billion.
I’ll throw in a chart of the entire Homebuilder’s Index to really make you scratch your head:
The ‘shoulda coulda’s’ will continue to register all-time highs in 2020.