Graycell Advisors

22 Mar 2020

Hello reader!

The human and economic cost of the viral outbreak continues to mount. The stock market has adjusted rapidly to a looming recession which will now occur as the first and second quarters are going to show negative GDP growth. The key question remains if the economic fabric will be sufficiently preserved to allow a quick rebound in the second half. We don't know yet and it's hard to predict. Unfortunately, the news is going to get worse before it gets better. But we do know there is a major stimulus package that is imminent which will assist people and businesses

This is not how one expected to start the year. Even though uncertainty is always inherent in the market, the present situation is quite unmatched. The new environment was discussed in two recent postings:

Healthcare In A Bear Market

What’s Ahead For The Stock Market

The S&P 500 has dropped -33% at its worst so far, while the small-cap stocks have declined nearly -43%. This remains a time when one needs to keep market exposure low. The model portfolio exposure is presently at 3 positions or 30%. All the positions are in healthcare, which has declined relatively less than the broader market.

At the same time, the stock market is at extremely oversold levels and the stimulus can potentially provide some relief, even though short-lived. The model portfolio has experienced many ups-and-downs over the years and negotiated them successfully. The present situation will eventually create significant opportunities, and patience is required. 

We will continue to keep you updated on any changes in the model portfolio.

For any questions, kindly contact us at

Wishing you good health!

Graycell Advisors


Graycell Advisors, and its affiliates, officers, employees, families, and all other related parties, collectively referred to as ‘Graycell’ and/or ‘we,’ is a publisher of financial information, such as the Prudent Biotech and Smallcap newsletters. Historical performance figures provided are hypothetical and unaudited, and based on our proprietary analysis and system performance, back-tested over an extended period of time. The performance results obtained are intended for illustrative purposes only. Past performance is not indicative of future results, which may vary. All stock and related investments have a degree of risk, which can result in a significant or total loss. In addition, smallcap segment is characterized by much higher risk and volatility than the general stock market. The Information contained herein does not constitute a personal recommendation or takes into account the particular investment objectives, financial situations, or needs of individual investors. If you decide to invest in any of the stocks of the companies mentioned in the newsletters, samples, alerts, etc., sent to you or available on our websites, you can and may lose some or all of your investment. You alone are responsible for your own investment decisions. We are not liable nor do we assume any responsibility for losses incurred as a result of any information provided or not provided or not made available in a timely manner, herein or on our website or using any other medium.  We also cannot guarantee the accuracy and completeness of any information furnished by us. Graycell is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell securities. We may or may not already have existing positions in the stocks mentioned in our reports. Our models are proprietary and/or licensed and can be changed or revised based on our discretion at any time without any notification. Subscribers and investors should always conduct their own due diligence with any potential investment and consider obtaining professional advice before making an investment decision.