Yesterday, the coronavirus had killed 130 people and infected over 7,000 since patient zero’s diagnosis.
Today, as I’m writing, the death toll has hit 213, and infection has spread to almost 10,000 people. The U.S. has confirmed the first person-to-person transmission in Illinois. And the World Health Organization has declared a global emergency.
The virus is escalating every day – and as if negatively correlated, stocks keep falling.
Earnings results from big-name companies like Apple and Tesla have beat expectations and broken records. The Fed decided on Wednesday to keep rates steady. Yet the market isn’t reflecting the success…
On Wednesday, stocks closed little-changed, only to open even lower Thursday morning. Despite closing in the green on Thursday, Friday morning futures again saw all three major indices opening in the negatives.
Investors don’t care about stocks’ record-breaking earnings reports. They care about the possibility that the coronavirus will slow economic growth.
This fear is pulling down stocks across every industry – regardless of whether or not that company is affected by the virus’ implications.
The bottom line is that emotions are moving this market. And if we know anything, it’s that emotions change. The moment the fear dissipates, stocks that survived the coronavirus’ economic effects will rise.
That means that now is the time to get in on these stocks.