Markets are recovering after a bloody beginning to the week. Suffering back-to-back 1,000-point drops on Monday and Tuesday respectively. The DJIA currently sits at +300 (+1.14%) before lunch. Coronavirus is still on the rise as France reports their first death from the virus. Brazil logged its first confirmed case and South Korea increased total number of infected by more than 280. Mainland China showed numbers declining for new cases while reporting more cases and deaths in the Hubei province.
Buy the dip? This is exactly what’s happened in the past for similar scares. Two days of pounding followed by some stabilization and then recovery. If history repeats itself, we should be back on track in a couple months or even weeks. This could be a unicorn virus, however. If COVID-19 continues spreading and deaths keep rising, the pain might not be over for stocks. China is involved heavily in the United States economy and if they fail to contain this proverbial plague, we could be in for a serious downward spiral.
It’s pretty calm in the United States. Nothing has changed in my day-to-day life. The only reaction the U.S. has had so far was a selloff in the stock market for a couple days. Unless I start seeing people in this country with facemasks on, we’re probably safe and I will not worry too much until then.
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