With the S&P 500 now at its lowest point in 2022, nearly half of all large-cap stocks are trading below their price on Feb. 19, 2020, the market peak before the Coronavirus Crash of 2020. 

Let’s look at some of the stocks below their pre-COVID-19 levels that are trading at a discount based on the price-to-earnings ratio.

With the S&P 500 now at its lowest point in 2022, nearly half of all large-cap stocks are trading below their price on Feb. 19, 2020, the market peak before the Coronavirus Crash of 2020.   Let’s look at some of the stocks below their pre-COVID-19 levels that are trading at a discount based on the price-to-earnings ratio.

Sam Mendoza

The TSA said it screened 2.95M travelers last Friday — the most ever in a single day

https://sherwood.news/business/us-notched-record-air-traveler-numbers-over-memorial-day-weekend/?utm_source=snacks_sendgrid&utm_medium=email&utm_campaign=snacks_20240530

 #Travel Junkie #Data is beautiful

Travel Junkie

Data is beautiful

Way to easily bet on us airlines recovery.  Prices currently at 2020 pandemic onset levels

Chris Nheu

The TSA said it screened 2.95M travelers last Friday — the most ever in a single day  https://sherwood.news/business/us-notched-record-air-traveler-numbers-over-memorial-day-weekend/?utm_source=snacks_sendgrid&utm_medium=email&utm_campaign=snacks_20240530   #Travel Junkie #Data is beautiful

While box office numbers flagged this Memorial Day weekend, airplane passenger numbers took off, with the TSA reporting a record-breaking 2.95M...

US notched record air traveler numbers over Memorial Day Weekend

Bobby

Reminds me of “Sir, this is a casino. 🎰  are you lost?” 😅

The challenge is being able to tell the difference 🫠

I should also say again that with public securities I prefer to make the mistake of buying into a new bull market late rather than eating the last leg down of a bear market for being too early

Alex

All meaningful returns in life, whether in wealth, relationships, or knowledge, come from compound interest.

🤓 let’s geek out 🤓

Illegitimi non carborundum

Single Malt Society 🥃

Food Porn

Tunes

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Bio hacking

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Jerome Cody

we’re teetering on the edges of the f*@k bucket, I’m going to sit out.

"Show me how many money managers have done well in the space of 25 to 35 or 40 VIX. The only thing you can do here is get some experience," McCullough says. 

"Many experienced bulls and bears don't know how to trade this. This is a really important time to just know that you don't know, and I don't know. But we do know that we have three regimes of volatility, we have entered the third - which we have appropriately labeled with an 'F' - and it's just going to be tough."

The best indicator and process I’ve found that helps with timing (at least for US equities) is to look at where VIX is at. Both low and high vol regimes have momentum and tend to cluster, so when we are in a high volatility regime I want to stay out of the way until we have clearly entered a low vol regime.

We can think of vol as being in roughly 3 buckets (source: all this is from paid research from Hedgeye - highly recommend): 

1) Below 20 VIX: low vol, everyone feels like a genius stock picker. Add long exposure in the upper teens, and set stop losses in case you’re wrong and vol transitions to the chop bucket 

2) 20-30 VIX: choppy sideways market with lots of action for active trading. Lean short when VIX is at 20, and set stop losses to close your shorts incase you enter the low vol regime. Lean long when you get towards the upper 20s, and set stop losses incase you are wrong and vol breaks out into the fuck bucket (see below）

3) >30 VIX (aka the “FUCK” bucket): basically no equity long works in this environment. Panic begets more panic, so when you’re in this bucket you’ll be seeing days where indices are down 3+% and individual stocks get crushed down double digits. 

I don’t buy equities in the fuck bucket even if they are down a lot, until vol gets back down to the chop bucket, because the risk of catching falling knives here is high. Someone else might choose to accept the falling knife risk at VIX 35 and get better returns if they happen to pick the bottom.

The best indicator and process I’ve found that helps with timing (at least for US equities) is to look at where VIX is at. Both low and high vol regimes have momentum and tend to cluster, so when we are in a high volatility regime I want to stay out of the way until we have clearly entered a low vol regime.  We can think of vol as being in roughly 3 buckets (source: all this is from paid research from Hedgeye - highly recommend):   1) Below 20 VIX: low vol, everyone feels like a genius stock picker. Add long exposure in the upper teens, and set stop losses in case you’re wrong and vol transitions to the chop bucket   2) 20-30 VIX: choppy sideways market with lots of action for active trading. Lean short when VIX is at 20, and set stop losses to close your shorts incase you enter the low vol regime. Lean long when you get towards the upper 20s, and set stop losses incase you are wrong and vol breaks out into the fuck bucket (see below）  3) >30 VIX (aka the “FUCK” bucket): basically no equity long works in this environment. Panic begets more panic, so when you’re in this bucket you’ll be seeing days where indices are down 3+% and individual stocks get crushed down double digits.   I don’t buy equities in the fuck bucket even if they are down a lot, until vol gets back down to the chop bucket, because the risk of catching falling knives here is high. Someone else might choose to accept the falling knife risk at VIX 35 and get better returns if they happen to pick the bottom.

we’re teetering on the edges of the f*@k bucket, I’m going to sit out.  "Show me how many money managers have done well in the space of 25 to 35 or 40 VIX. The only thing you can do here is get some experience," McCullough says.   "Many experienced bulls and bears don't know how to trade this. This is a really important time to just know that you don't know, and I don't know. But we do know that we have three regimes of volatility, we have entered the third - which we have appropriately labeled with an 'F' - and it's just going to be tough."

Sam Mendoza

A group of likeminded people in The Most Important Thing are talking about this.