Let’s imagine ourselves in a happier time for investors. A time when few had heard of the disease known as Covid-19, and when few who had regarded it as a major threat to either their health or wealth. A time when stocks were moving solidly higher; shares were ‘reassuringly expensive’; monetary policy was accommodative; a post-election fiscal boost was expected in the UK; and largesse looked likely in the US as the incumbent president jockeyed for re-election.
Breathe deeply and focus. Are you in this special place? Readers less traumatised by the recent market crash may even recognise these imagined investment surroundings as being very similar to the start of 2020.
Now let’s undertake one more mental exercise. With our reassuring investment backdrop held firmly in mind, imagine winning a competition that entitled us to buy a portfolio of shares at huge discounts to the prevailing market price – offers of 30 per cent off or even 50 per cent off are commonplace. Surely anyone would jump at that chance – the question is, which shares should we buy?