Last Friday, March 13, Timur Turlov, Freedom Finance CEO and Chief Investment Strategist, hosted a video conference in both YouTube and Instagram. The conference was on the current stock market conditions and the possible outlook. Over 8,000 people attended it.
In the first part, Turlov talked about the reasons for the US and other stock markets drastic decline. This decline was the quickest and most shocking since 30 years ago, he said, but the sell-off was mostly due to the emotional reasons. There were no fundamental factors for the stock market to lose 30% of its yearly highs.
According to Freedom Finance CEO, the triggers were the pandemic announcement, the lock-down measures, and the flights between the US and the EU being partly canceled. This actually caused panic across the board, and the prices went down. Meanwhile, the insiders, large funds, and world-famous investors like Warren Buffett, had already started buying the stocks of the largest and most trusted US companies, Turlov said. According to him, this strategy is the most feasible, as when it comes to investing, one should consider the outlook within five or ten years, and not the current situation. The long term outlook is positive, and the COVID influence is unlikely to last longer than Q1 and Q2.
"As I see it, you should be prudent and just look back and say: Okay, this pandemic is dreadful, but its consequences won't last for more than a quarter. In three months, everything will be totally different: travel bans will be lifted, the unsettle matters will be finally settled, and the pending demand will finally find its way to the markets. Overall, we will all be back to the normal life", Turlov said.
He also detailed what happened after the panic-driven sell-off ended, and admitted that the unprecedented support by the Fed., which launched a $1.5T quantitative easing program, will help the stock market quickly recover and continue the uptrend.
During the second part of the video conference, Timur Turlov answered many questions asked by the attendees. Those questions were related to the best investment ideas in the US and other markets under the current conditions. Some asked whether a quick rebound was possible after the fall. Many attendees were interested in the upcoming IPO's, as well as the crude price wars and their consequences.