Markets down another 7% at the moment.
With fear really rising and the prospect of large-scale closures of universities and work places and cancellation of gatherings, the fear is getting worse. Could get far worse.
In that scenario it is hard to see how stocks don’t keep falling.
I’d like to offer reassuring thoughts but I am not having them at the moment.
Well, I do think that even if there is a big contraction in the economy, things will get back to normal eventually but it is anyone guess how long.
At this point it could take something drastic like the FED buying stocks to stem the declines.
P.S. 11:10 am eastern
China continues to report very few new cases. Just 15 new cases and 6 of which came in from outside China. Just 11 new deaths. 78% (and counting) who had the virus have recovered. I don’t see this being mentioned on CNN or CBC. Possibly it would be calming news. It might also be an indication that very strict measures are needed to contain the spread.
“Overall, the 15 new confirmed cases in mainland China on Wednesday was a drop from 24 cases a day earlier.
That brings the total number of confirmed cases recorded in mainland China to 80,793. As of Tuesday, 62,793 people have recovered and been discharged from hospital, or nearly 80% of the overall infections.
As of the end of Wednesday, the death toll in mainland China had reached 3,169, up by 11 from the previous day. Hubei accounted for 10 of the new deaths, including seven in Wuhan.”