CD Media
Markets

Markets Collapse On News Virus Spreading Fast In Other Countries Outside China

Markets Collapse On News Virus Spreading Fast In Other Countries Outside China
COVID-19 Outbreak Cases in South Korea (02.21.2020)
Image by 병현이

As of writing this post S&P futures are down over 50 points; Dow Futures are down almost 500 points. The news that novel coronavirus (COVID-19) has broken out in a major way in northern Italy, South Korea, Japan, and Iran has spooked traders who would rather sell first and ask questions later. As the sell-off deepens, margin calls will hit, which will deepen the panic. At that point, we could get capitulation.

We have been saying for some time now the market is richly valued and ripe for a healthy correction; this may be it. It will be interesting to see what the Trump administration (and the Fed) does regarding the pandemic in the coming days as it relates to market pressures. COVId-19 has yet to take hold in the U.S., despite the decision to fly at least 28 infected Diamond Princess passengers to CONUS military bases for quarantine. The American economy is resilient and other than supply chain issues, not correlated to Chinese business conditions. The effects of the Chinese contagion will be company specific.

However, it is likely we will have a breakout of the pathogen sooner or later in-country. COVID-19 is simply too contagious for that not to happen.

This correction will be a massive buying opportunity long-term. The contagion will force American companies to move manufacturing back to the United States. The lure of cheap labor in China will be over, in favor of the America First agenda. This will further strengthen Trump’s economic program`, and results.

In fact, the epidemic is simply accelerating the collapse of the Chinese economy which was already underway due to Trump’s trade policies.

The Trump economic miracle is still in-tact. This correction will simply be an opportunity for those who didn’t believe it at first to get on board at a reasonable price. The next decade will be amazing for America..

Related posts

Consumer Confidence Beats

CD Media Staff

You Won’t See This On Corrupt Media – Trade Balance Shrinking Under Trump

CD Media Staff

Corrupt Media Still Trying To Say Trump Economy Has Peaked After ADP January Revision Jobs Blowout

CD Media Staff

5 comments

Avatar
S E Wall February 24, 2020 at 3:09 pm

The market has not collapsed. Down 3%. You must stop spreading panic. The market has not collapsed.

Reply
Avatar
bob February 25, 2020 at 1:01 am

dead on, a 100o out of 28000 isn’t a collapse, it’s profit taking, no more than that

Reply
Avatar
Htos1av February 24, 2020 at 3:16 pm

Seems kinda weak if this is to take down Trump.
Abject fail!

Reply
VIDEO: WHO Press Conference After China Trip February 24, 2020 at 8:13 pm

[…] Markets Collapse On News Virus Spreading Fast In Other Countries Outside China […]

Reply
Max Keiser: Bitcoin Will Hit $400k February 24, 2020 at 9:01 pm

[…] Markets Collapse On News Virus Spreading Fast In Other Countries Outside China […]

Reply

Leave a Comment