the scary partA laymans take on investing today
If you take an overview of Air Canada and its entire history the expectation of a return to 2019 share price peaks might not be sensible. If you take out 2019 you get a better sense of how the share price has performed overall. 2019 may have been a year we look at as a simple blip in the market. A year where the investment market made out like bandits, From there we have seen significant losses in 2022 to most major companies who for the most part are all back to pre peak norms and some even lower.
Is this a major investment moment or a return to norms? Corrections in the market can last from five to fifteen years historically so if this correction is anything like some of the downturns we have seen in the past this may not be the greatest moment to be buying on the dips. They may be more than just dips and you may see your money stagnant or worse for many years to come.
Economists are split at best on inflation, recession, gdp expectations etc. It would not take much right now to see more big drops. The market is on extremely shaky ground right now. It is hard to see a huge upside right now. The interest rate hikes will continue and getting inflation to return to under 3 percent looks to be still a long way off. If we start to see business failures and mortgage defaults it could get a lot uglier before it turns to sunny again.
Not liking the sentiment right now but is there going to be a major price return to 30 and then to 2019 from there? Maybet but it might be three to five years away if at all. It was only five years ago that this was a 13 dollar company. Many things have changed since then but many things are changing right now as well. 13 or 30??? Not sure anyone really knows at the moment.