There have been such trading days in 2020 when the volatility of the stock market was similar to the Bitcoin price in terms of fluctuation. We’ve seen huge price swings with sudden drops and fast reversals. All long-term investors had to fight the urge to ‘day trade’ to avoid losing money, as buying and selling at the wrong moment can turn out to be very expensive. It seems that the best approach is a measured one because the stock market crashes offer great deals for long-term investors.
On the contrary, Bitcoin often makes you act fast. It’s not the kind of asset you buy and then forget about it for years. Its value, in the long run, could be $0 as or $20,000. In addition, there’s the need to negotiate Bitcoin forks, as well as fraud and lack of trustworthy forecasts.
One stock that was especially deeply affected by the crash is M&G (LSE:MNG). The price fell by 50% in just one month at one point but then stabilized. However, the shares are still sold at a 30% lower price comparing to the start of this year. M&G might not be the most promising stock out there, but the company is well-run and equally well-capitalized. That’s why we can count on M&G to be just fine when the world goes back to normal, whenever that is.
At the end of May 2020, M&G representatives said that the company was in a financially strong position, despite the pandemic, and paid dividends to the shareholders. This demonstrates that cash flow doesn’t appear to be an issue.
Not only that, but they also went ahead to acquire other businesses. It was announced recently that M&G was purchasing Royal London’s Acentric platform, which is essentially an investment shop for financial advisors. This seems to provide the company with external revenue channels.
All in all, M&G is a solid business in a strong position despite the pandemic at a 30% discount. If this isn’t a bargain, what is?