North American markets were pummelled on Friday as the TSX entered correction territory and oil prices plunged by more than 10 per cent amid a painful selloff that continues to be spurred on by the coronavirus outbreak.
“I think the markets were overvalued and they were almost looking for a reason to sell off,” de Sousa said. “It’s human nature to try to squeeze every drop of returns out of the fruit and I think they’ve been dealt quite a swift blow.” “The VIX is at 45 and any time the VIX is over 31, the market is uninvestible,” Clark said. “The only things working right now are bonds and gold. There isn’t anything in the equity market immune to the selloff.”
U.S. West Texas Intermediate crude dropped US$4.62, or 10.1 per cent, to US$41.28, its lowest close since August 2016 and the largest daily percentage loss since November 2014. Analysts from TD Securities noted that the ongoing spread of the coronavirus had already “weighed heavy ” on crude oil markets.“I don’t see capital coming back in a big way,” he said. “I’d rather own technology on a big correction than I would certainly oil.”
Love it. I'm going to be so rich in six months when this foolishness subsides.
[loud enthusiastic value investor noises]