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Motley Fool Hidden Gems Investing

Sell in May and Go Away?

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 1 May 2020

⏱️ 39 minutes

🧾️ Download transcript

Summary

An additional 4 million Americans file for unemployment as the total number of unemployed tops 30 million. The S&P 500 wraps up its best month since 1987. Amazon reports surging sales and rising costs. Apple sees strength in services. Mastercard and Visa beat expectations. Alphabet gets a boost from YouTube. Microsoft gets a boost from the Cloud. And Facebook rises on strong engagement. Motley Fool analysts Aaron Bush, Andy Cross, and Jason Moser discuss those stories and weigh in on the latest from Atlassian, McDonald’s, Microsoft, Spotify, Starbucks, Teladoc, and Twitter. Aaron talks about the future of gaming. And the guys share three stocks on their radar: Beyond Meat, Medtronic, and Docusign. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money.

0:10.0

It's the Motley Fool Money Radio Show. I'm Chris Hill joining me this week, Jason Moser, and Andy Cross. Good to see you as always, gentlemen.

0:17.0

Hey, hey. Hey, Chris.

0:27.0

We've got the latest headlines from Wall Street. We've got a few stocks on our radar, and we have a lot of earnings to get to, but we're going to begin once again with the big macro nearly four million Americans filed for unemployment this week.

0:40.0

That brings the total to 30 million unemployed since the pandemic hit America and yet Andy Cross.

0:47.0

Somehow April was the best month for the S&P 500 since 1987.

0:53.0

Yeah, Chris, you really see those headlines, and then you see this stock performance in April, and you just think there's just some disconnect with what investors are seeing.

1:01.0

Now, we're still off from the highs, so clearly the COVID pandemic that is facing all of us continues to have that impact. So we're down from the highs, but it's been a really nice rebound.

1:12.0

Really, the April, which is pretty much across the board, energy, it was actually the best performing sector in the S&P 500, but clearly tech and consumer are seeing a nice rebound as well.

1:24.0

And you just look at the numbers, Chris, and you look at how each of us is interacting day by day, and you can see, I just can't help but think you continue to see this divide between the digitals, halves and the digital have nots and the companies that are really reacting well to this,

1:40.0

to the pandemic, and as we are using more zoom and Google solutions and Microsoft solutions, Apple solutions, much more digital solutions, those companies not just during the pandemic, but also through the pandemic will continue to do well and thrive.

1:58.0

And those that aren't, they're much more tied to the traditional economy are the ones that look like they're going to be the ones that are going to be long term dragging behind.

2:07.0

So, but clearly a lot of excitement, April with the news as coming out about potentially improving and unlocking economy longer term.

2:16.0

Yeah, I mean, I don't think we've ever really made the argument that the market makes a lot of sense in the short run, right? I mean, that's something we talk about all the time is that these, these near term market behaviors aren't always so easy to fully make sense of, and that's why I think it really, really supports our argument of always be invested, right?

2:37.0

Always be investing. I mean, it's just so difficult to try to figure out ways to get in and out of, of the market. You would think maybe this, this would be a tumultuous time for the market, but, but here we are obviously was one, one heck of a month.

2:50.0

And I think part of that really just speaks to the source of all of all of this really when it boils down to it. I mean, there is a finish line here, right?

3:00.0

I mean, at some point we will have this, this virus under control, whether that's in the form of treatments or whether that's in the form of vaccine.

3:10.0

So, I mean, this isn't something where I think we're looking at ultimately a lost decade. I mean, I've had questions before about the great depression versus what's going on now.

3:18.0

I mean, I think, let's remember that the causes of the great depression, right? There were a number of causes, and it's difficult to really pinpoint one thing. There, we know the cause of this, right? And we also know really the ultimate solution of this.

3:31.0

And it's just a matter of buying time. And so we've seen that our government is going to get in there and do what it can to provide the liquidity to buy us as much time as possible. And I think that's something to remember.

3:42.0

But ultimately, there is a finished line that's something to always keep in mind here. I think that's why the market is willing to give this thing a little bit more credit than perhaps we were thinking it might give at the beginning of the year.

...

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