The stock market's sell-off was triggered by the coronavirus concerns, but the ingredients for a drop were already there.
So it was with commercial real estate defaults in the late 1990s, with Japan entering recession at the peak of the dot-com bubble in 2000, and with residential mortgage delinquencies in 2008. So it has been with the global concern over the novel coronavirus designated COVID-19. Something, even an event wholly unrelated to the market bubble, is always the immediate trigger of a meltdown., well before the ongoing viral crisis took hold of investors' – much less the world's – attention.
After all, in both 2003 and 2014 equity markets were a mere 30 months and 4.8 years, respectively, from their prior pre-recession highs, and 42% below and 23% above those prior highs, respectively. This leads to the conundrum voiced to me so often by frustrated investors: "what else are you going to do with your money?" Until very recently, for many, the answer appeared to be to wager it on additional valuation expansion in equities. I say valuation expansion because we clearly have not been seeing either rapid economic, nor any broad earnings, growth for over a year that could have justified prices paid for stocks.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
DanielAlpert Or not. Every article about the stock market is now a Doomsday scenario to frighten and cause panic. It’s just a game to the media. There is never a care for the average person who can lose their retirement.
DanielAlpert Nah. Buying the dip.
DanielAlpert Wash your hands.
DanielAlpert Especially if the fear mongering continues.
DanielAlpert This is the BS that is being spread by people with not skin in the game. 'Could be'. You can never be wrong . If you are so sure, sell everything you have and short the market publicly, publish P&L regularly.
DanielAlpert Or this could be the end of the drop. So many possibilities...
DanielAlpert When you factor in the virus AND being overdue for a correction, yeah, I’d hold onto my hat.
DanielAlpert Agree.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stock market crash: How coronavirus sell-off would confirm a recession - Business InsiderOne Wall Street expert warns the market's coronavirus-driven meltdown could soon confirm a recession is looming — and explains why two-thirds of the damage is already done If things dont become normal by the end of March, then a recession is almost inevitable. Already Q1 is expected to have negative global GDP growth. If it continues at the same rate of spread till the end of March then Q2 would follow suit. But remember 'bUy ThE DiP bRuH' Most Important Secular Perspective Nasdaq 100 Futures... Could confirm something is looming...lols. Wasn't that 'confirmed' a long time before the virus?
Source: BusinessInsider - 🏆 729. / 51 Read more »
Coronavirus sell-off threatens to end U.S. stock market's decade-long bull runThe Dow Jones, S&P and Nasdaq correction reflects investors re-assessing the potential economic damage caused by the coronavirus. I suffered with bronchitis for years until my then Doctor gave me an antibiotic for Anthrax. Since then No bronchitis Just a thought you can try ok but why is dr. wily mad isn't he responsible for this Schumer turned into a stooge for the borderline Communist Democrat Partying. After all these years as a Democrat Schumer spinelessly allowed communism to take over Democrats party.
Source: Newsweek - 🏆 468. / 52 Read more »
Stocks Open Lower, Face Biggest Weekly Losses Since 2008A market storm gathered pace as stock markets around the world sold off and investors struggled to calculate the economic fallout from the coronavirus epidemic. We offer Loans, Cash & Asset Backed Financial Instruments such as Bank Guarantee and Standby Letter of Credit (BG/SBLC) for lease and sale, and loan facilities. We offer verifiable bank instruments via SWIFT from genuine providers capable of taking up time bound transactions. WSJ more great news. Thanks for the panic alert!
Source: WSJ - 🏆 98. / 63 Read more »
Trump says he hopes the Fed gets involved 'soon' to combat market sell-off from coronavirusPresident Donald Trump leaned on the Federal Reserve for help to deal with ramifications from the coronavirus impact on the stock market and the economy. he probably just found out that Fed is not a nickname for FBI and is showing off. Potus does not need to panic The sell off is not a result of a weak economy. Focus on the vaccine and all will be well. I didn't realize the Feds job was to protect the stock market...Oh, it's not, this is just more stimulus begging to prop up the 'best economy ever' you lowlifes have been lying about since Trump started breaking the bank 3 years back?
Source: CNBC - 🏆 12. / 72 Read more »
Fashion Stocks Continue to Plummet on Coronavirus FearsThe stock market has gone from calm resilence when the outbreak was contained in China to something more like panic.
Source: wwd - 🏆 24. / 68 Read more »
The coronavirus stock market rout will hurt billionaires the worst - Business InsiderThe coronavirus has already cost the ultra-wealthy more than $100 billion. Here's why they're likely to feel more pain from the market drops than the average American. It's only a loss if you sell Bc they own more stock than the average person...
Source: BusinessInsider - 🏆 729. / 51 Read more »