NEW YORK - The words “bear market” and “recession” are being used with increasing frequency as investors try to assess how badly the coronavirus outbreak will damage global growth and to what extent it could further weigh on asset prices.
Rabobank in a note earlier this week said the initial strategy in most Western countries, which was to do nothing and tell people all is well, was not effective. Nineteen people have died out of about 450 reported U.S. cases of the novel coronavirus, which originated in China and rapidly spread around the world. More than 3,600 globally have been killed.
The bank’s main scenario forecasts a drop of 15% to 20% in U.S. stocks followed by a rebound. A more pessimistic outlook sees a larger drop and a recession.The explosion in market volatility has come as the bull market marks its 11th year. The S&P 500’s lowest close following the 2008 financial crisis was 676.53 points on March 9, 2009. The index’s most recent high was 3,393 on Feb. 19.
Some analysts are focusing on potential pressures on cross-currency basis swaps, which institutions use to hedge currency exposure and obtain access to foreign currency funding, and other instruments that function as the “plumbing” of money markets. Others are worried about the credit markets and businesses’ access to cash.
thebearablebull Party's over wall street! All I can say is 'What did you expect after a year of the fed and corporate stock buy backs'?
The virus will be the scapegoat.
What the Trump admin was so wrong about is they think lying about the crisis or pretending the crisis doesn’t exist will keep the stock market from falling, but they are wrong, only public trust of the government would at crucial times like this, but it is too late now,that is-
Come on. Even if 164 are all positive (110 possibilities), statistically that is .00005% of the US population. We have the best medical with the smartest minds. We have this situation under control.
If you a margin investor get ready for hell. I am a cash investor now. I don't have to sell even if my investments at loss. Nothing worse than a retail investor with margin debt at this time. At one time I used margin & suffered consequences. Never again!
So much for trumps great economy, it sucks people are getting sick and worse, but if it's the virus that takes him down, and takes the economy down, we will all eventually be better because of it
To contribute to Trump’s market crash, i will not spend a penny. Even on toilet paper. I will use coupon papers i receive in the mail to wipe my ass! Never boast about stock market. Its never smart
A system that is heavily reliant on capitalist profits through worker exploitation, consumerism, austerity is doomed
Odd name for a virus out of China
SELL!!!
Investor fears rise over Mike Pence. This administration can mess up a wet dream
Fears is the driving force of all this chaos. All are affected businesses and life. There are more worst pandemic than this corona that we have endured. If we can only calm down and exercise caution instead while awaiting for the vaccine would be helpful.
Ray of sunshine