In today’s video Marcello talks about dividend investing. One topic he hasn’t talked much about before since he had had to adapt his way of trading to his way of living. Traveling constantly and not being able to have a good internet connection or any internet connection at all made Marcello develop his own style of trading. Marcello has been swing trading for the last years in order to have all the trading centers running. Remember that Marcello is not a trading advisor and he only does these videos for educational purposes only.
He now thinks that with this huge crash in the markets last week he is looking at new incredible opportunities he wants to share with all of us. The entire global economy has frozen since governments have taken measures to lock down people in order to contain the spread of the virus but giving a huge blow to the world economy in the process. He thinks that in the kind of situation that we are in, he prefers the kind of companies that don’t rely completely on customers buying goods, especially luxury goods. This situation we’re living in today is going to pass away, but it might come back as another wave, just like the Spanish flu did, but this will definitively change the way we live. So, you have to be careful where you put your money now. What he really likes right now are big oil companies because the economy moves on oil. Everything moves on oil. And something great about these companies is that they are still paying their dividends! They haven’t stopped paying them nor slashed them as they did in the past. We now have to think about security but also about making money.
Marcello goes on talking about what he thinks about investing in shares of oil companies like British Petroleum, Shell or Exxon Mobile. He shares some insight on how that investment can turn out very profitable but never forgets to warn us that the market is unpredictable and we should do our own research. A word of wisdom from Warren Buffet fits perfectly this situation “Be greedy when others are fearful, and be fearful when others are greedy”. We’ve lived the biggest expansion in the history of the markets. The biggest bull run in history. That’s greed. And now we have a situation where the market’s going down and there’s a lot of fear on the streets. All of these are created by an unprecedented event. Governments are locking down. The economy is being shut down. But when we think about the worst-case scenario, the world is not going to stop buying gold.
This is a situation that Marcello talked about before. On previous occasions he referred to this crash and told us it was going to happen. This is probably not going to get the global economy into recession, but it will definitely throw red numbers on the second-quarter growth result. Marcello is usually making videos about trading, but since the online community has been asking for him to make videos on investment in general, he’s now giving us his thoughts about dividend investing.