Join our community of smart investors

How to trade bouncing Burford

Michael explains why shares in the controversial litigation financing firm are on his watchlist
How to trade bouncing Burford

What a difference a few weeks makes. Not long ago, everyone was predicting doom and gloom – I was also feeling rather bearish myself. Yet I have been buying stocks like they are going out of fashion. Is this because I’ve changed my mind? Well, yes and no. Yes, in the sense that I am currently bullish on stocks, and no because I still believe there will be economic pain and misery ahead for many. But – as I have said before in this column – it makes no sense to try to make sense of it all. 

Take Carnival (CCL) for example. This stock has been buffeted by bad news after bad news. Every few days, the company has been announcing further delays to restarting its cruise lines. But despite this, the stock has held firm and even rallied. If a stock keeps taking bad news like a heavyweight boxer takes punches and still stays standing, that’s not a stock to short – in fact, you ought to be thinking about going long. 

Join our community of smart investors

Subscribe today and enjoy unlimited access
  • Comprehensive companies coverage
  • Actionable commentary, ideas and portfolios
  • Tools and data to help you manage and track investments
  • Help managing your portfolio
Explore subscription options

Already a subscriber?

Sign in