2. Despite a strong start to 2020, the Dow Jones Industrial Average, the Nasdaq Composite, and the S&P 500 are all in negative territory for the year. What's more, these three major indices have each fallen by over 10% in the past 30 days.
But if history is any guide, this SARS-CoV-2 induced sell-off should turn out be one heck of a buying opportunity. Some of the biggest gains in history, after all, have been made by savvy investors who bought stocks when everyone else was selling. The financial crisis of 2008 drives this point home.
The brave souls that bought shares of high-quality companies like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) following the market's collapse on Sep. 29, 2008 have made out like bandits. Shares of Apple and Amazon have each generated total returns on capital of well over 2,000% in the intervening 11-plus years.
Now, the SARS-CoV-2 outbreak will certainly have a negative impact on corporate earnings this year, but there's almost no chance that this virus will evolve into the same kind of existential threat to capitalism that was the financial crisis of 2008. Therefore, long-term oriented investors probably shouldn't be afraid to go bargain hunting right now.
...
Pfizer's annualized dividend yield presently stands at 4.3%. The drugmaker's shares are also valued on the lower end of the spectrum for a big pharma, at 12.7 times forward-looking earnings. Nonetheless, Pfizer has been a big disappointment for investors in 2020. Ever since the drugmaker announced plans to carve out its generic drug business into a stand-alone unit, investors have kept their distance.
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