Stocks Tumble On Coronavirus Fears

Stocks Tumble On Coronavirus Fears
3102Stocks Tumble On Coronavirus Fears

Anthony J. Ogorek | ED.D., CFP®

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