Markets opened red with a 600-point drop at the bell. Continuing to fall to over 900 points as of the posting of this article. Generally, the stock market is a great representation of consumer confidence and having a massive drop such as this clearly acknowledges the growing fears of Coronavirus. It’s pretty much certain that the reporting of cases and deaths aren’t very accurate. We may not know the true number of cases for months. Right now, the virus has penetrated into Italy and is cruising through Europe.
Current updated data from NBC News (source below):
“Number of coronavirus deaths in China nears 2,600
• Italy records fifth coronavirus death as it becomes worst-hit country in Europe
• Dow plunges by more than 900 points on fears of coronavirus
• Two more doctors die of coronavirus in China
• More than 800 confirmed cases, 8 dead in South Korea
• China postpones key political meeting because of virus
• China bans illegal wild animal trading amid coronavirus outbreak: state media
• Coronavirus deaths spike to 12 in Iran; 47 cases confirmed”
This further confirms speculation that Coronavirus could tank global economic growth, which is why we are seeing the selloff today. We will have to see how the market will react for the rest of the week. Billions of dollars could be swept off the stock market in minutes. If you are currently invested in the stock market, I would be careful in a time like this. The fear is certainly real and this virus could be a long-term endeavor if countries continue to fail at eliminating it. However, this could also lead to a great buying opportunity for some people waiting to find a nice entry point. I wish you the best of luck out there, and regardless of market exposure, you should be as prepared as you can be in case of emergency. I don’t believe this virus is going to start spreading rampant here in the United States, but again, you may find grocery stores becoming a little slim if you live in a big city. The Dow has dropped an additional 100 points as I was writing this.
I will post an additional article on this subject to my Patreon page: