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
PLEASE SEE IMPORTANT DISCLOSURE INFORMATION HERE.
