A pandemic has trickled through global markets, economies, and families, leaving citizens terrified.
A vast majority of you haven’t experienced a global pandemic like our current one. Earlier in the 2000’s, HIV/Aids, Ebola, SARS and H1N1 were affecting countries across the globe.
But Coronavirus, also known as COVID-19, seems different. Why is that?
There is more anxiety, endless amounts of government stimulus, markets crashing and...QUARANTINE.
This is World War C.
The Mysterious Coronavirus
Researchers speculate the Coronavirus started in Wuhan, China.
Total global cases reached an immense 211,000 cases! We don’t see light at the end of this tunnel, yet!
Global markets are continuing their sell-off while seeing moves not seen since the 2001/2008 crisis’. The Fed has already taken massive action in hope to stem market fears.
Where Did the Virus Come From
Wuhan, China is the suspected origin of COVID-19. How does a highly contagious disease like this come about?
China is known for wet markets which are local markets where locals & tourists can purchase fresh fish, meat and produce. These wet markets are generally safe for locals; but when you add exotic wild animals, it can be a Trojan horse waiting to happen
Some of the markets were selling exotic wildlife animals which are now illegal to sell in China.
Tastes like chicken I’m sure!
These animals come from unknown areas in China and who truly knows what they are susceptible to. China has loose restrictions on exotic wildlife trade. As a result, these exotic animals, susceptible to diseases, are in contact with produce.
Imagine looking to get some fresh fish after seeing a skinned raccoon next to it!
The Spread Hasn't slowed down Yet
Total global cases are increasing at an alarming rate. In one of our newsletters from February 28th, there was a reported 83,000 cases. It currently stands at an immense 204,000 cases!
With flu like conditions (fever, cough, shortness of breath), the coronavirus sounds like a mild disease. Yes, the majority of the time it’s mild. The CDC estimates a fatality rate in a range of .25%-3%.
But no matter how bad you think the virus is..
It's still spreading which is bringing increasing amounts of anxiety to investors, businesses and ordinary citizens.
Older adults, especially with pre-existing conditions, are more susceptible to the virus. This is concerning for the masses because of grandparents & parents. Yesterday, during the Trump Administrations “15 Days to Slow the Spread” speech, it was advised for older adults to stay away from the public.
Trump Administration Is Doing Everything They Can
Global markets took a turn for the worst in 2020. Pensions, retirements, 401ks, and passive investors have witnessed a ferocious selloff, catching many off guard.
- The /ES, E-mini S&P futures are off the 2020 highs by 30%
- Dow Jones dropped 32% from its highs at 295.56
- NASDAQ is off its highs by 30%.
The Trump Administration, since 2016, has obsessed over the stock market. Nothing wrong with that one bit! BUT..
We are now seeing their desperation and willingness to do anything to prop markets up. Along with the Federal Reserve, Trump and the Administration have announced stimulus packages and rate cuts.
- The Fed has cut rates to historic lows. 1.75% to 0%
- $700 billion quantitative easing program
- White House proposes a 850 billion package
According to the WSJ, “One official said millionaires and billionaires would be excluded and the administration currently estimates that the amount per adult would exceed $1,000.”
Sounds like FREE money to me!? How many times has this happened in history?
It Will Get Worse Before It Gets Better
The possibility of escalation from the virus is extremely high! With highly populated countries like India not experiencing the full contagion, it is bound to happen. A healthy vaccination will also take some time, but this is also a time miracles could happen.
The world will have to wait and see.
It will depend highly on how the market digest stimulus hopes and how much worse the virus gets. If you are beginner in Forex or have some experience, this is the data you need to be watching..Fundamentals and macroeconomics drives the markets!