Stocks Tumble On Coronavirus Fears

Stocks are taking a major hit due to the spread of the Coronavirus.

Here’s what you need to know:

• Investors are shifting away from riskier assets on signs outbreak is spreading outside China.
• Strict quarantines are being imposed in an attempt to contain the spread of the virus.
• There is no cure for the virus, we are unsure of transmission mechanism and a commercially available inoculation is at least a year away.
• Markets are discounting a dramatic slowdown in economic growth. Depending on the progression of the disease, the virus could end the longest bull market in history.
• Investors should not use today as an opportunity to “buy the dip” as the market has just begun to reprice growth.

Reference:
NY Times Article: Global Stocks Plummet Over Coronavirus Concerns

CNN Business: Global Stocks Hammered as Coronavirus Cases Surge in South Korea and Italy