Will The Coronavirus Outbreak Cause A Massive Stock Market Crash?

Featured Story

Could it be possible that this coronavirus outbreak will be the trigger that finally bursts the biggest stock market bubble in U.S. history? As I have discussed previously, stock prices in the United States were the most overvalued that they have ever been during the month of January, and our stock market has never been more perfectly primed for a huge meltdown. But stock prices are all about what investors believe will happen in the future, and if they remain convinced that the future is bright then perhaps this stock market bubble could persist for a while longer. Unfortunately for Wall Street, this coronavirus outbreak is starting to create a wave of fear in the financial community. In fact, concern about the coronavirus pushed the Dow Jones Industrial Average down more than 600 points on Friday, and that represented the worst day for the Dow since last August

Stocks fell sharply on Friday, wiping out the Dow Jones Industrial Average’s gain for January, as investors grew increasingly worried about the potential economic impact of China’s fast-spreading coronavirus.

The Dow dropped 603.41 points, or 2.1%, to 28,256.03 in the 30-stock average’s worst day since August. The S&P 500 had its worst day since October, falling 1.8% to 3,225.52. The Nasdaq Composite dropped 1.6% to 9,150.94.

Up until now, investors were very confident that the Fed and the Trump administration could keep the party rolling, but now that is changing. Just consider what Ilya Feygin just told CNBC

“The theme coming into this year was the Fed and Trump are going to bail us out of any problems, but the virus is something neither one can do anything about. That’s a reason to become more fearful.”

A reason “to become more fearful”?

That certainly doesn’t sound good for stocks.

And this coronavirus outbreak has also been pushing down the price of oil

Oil prices have also suffered from the virus outbreak, because China is a big consumer of the commodity.

US oil prices are on track for their worst month since May last year, when the US-China trade war and high inventory levels weighed on prices.

Ultimately, the economic impact of this crisis will be determined by how bad this outbreak eventually becomes, and that is very uncertain at this point.

But without a doubt, the coronavirus is already having a substantial impact on the Chinese economy. The following comes from CNN

The economic impact of the virus is still impossible to determine, but one state media outlet and some economists have said that China’s growth rate could drop two percentage points this quarter because of the outbreak, which has brought large parts of the country to a standstill. A decline on that scale could mean $62 billion in lost growth.

Goldman Sachs is warning that this outbreak will also cause the U.S. economy to slow down this quarter, but the bank is still convinced that next quarter will be better

The fast-spreading coronavirus could slow first quarter growth of the United States economy, according to a new report from Goldman Sachs.

Analysts at the firm forecast a 0.4 percentage point decline on US annualized growth through March. But it’s not all doom and gloom: Goldman Sachs (GS) also predicts that growth will rebound in the second quarter by roughly the same amount.

Of course, the analysts over at Goldman Sachs are assuming that this coronavirus outbreak is not going to turn into a horrifying global pandemic.

But what if they are wrong?

During the last two weeks of January, the number of confirmed cases got 236 times larger, and if this outbreak continues to grow at an exponential rate it is going to be absolutely catastrophic for the entire global economy.

Quite a few experts are now recognizing this reality, and that includes Tuomas Malinen

Global recession, a European banking crisis and a crash in the U.S. capital markets will produce a global economic collapse which will almost certainly overwhelm any attempts—massive and coordinated as they may be—to turn the tide by over-stretched central banks and over-indebted governments.

This is, why the coronavirus outbreak should be treated for what it is: a potential harbinger of human and economic calamity.

Whether such a scenario materializes in the weeks ahead all depends on how widely this virus spreads.

Personally, I am hoping that this outbreak fizzles out as rapidly as possible. This virus has an incubation period of up to 14 days, and wondering who might have the virus is going to drive a lot of people completely nuts.

Unfortunately, it looks like things are only going to get worse. According to a study that was just released, we could soon have “independent self-sustaining outbreaks in major cities globally”. The following comes from Natural News

A new, urgent study just published in The Lancet warns that “independent self-sustaining outbreaks in major cities globally” may be “inevitable” due to the “substantial exportation” of symptomless carriers of coronavirus. That same study also calculates that 75,815 individuals are infected right now in mainland China, where the official government numbers are currently under 10,000.

Titled, “Nowcasting and forecasting the potential domestic and international spread of the 2019-nCoV outbreak originating in Wuhan, China: a modelling study,” the study is authored by Professor Gabriel M. Leung, MD and Kathy Leung, PhD.

Coming into this year, so many of us felt such a sense of urgency, but I don’t know anyone that thought we would potentially be facing a horrific global pandemic by the end of January.

The worse this outbreak becomes, the more pain the global economy is going to feel.

And there is no way that this stock market bubble is going to survive a severe global economic downturn.

The only way anyone ever makes money in the stock market is if they get out in time. And unfortunately, the ridiculously elevated prices that we have been witnessing may not last too much longer if this outbreak continues to spiral out of control.

Source: the most important news.com

StevieRay Hansen
Editor, Bankster Crime

MY MISSION IS NOT TO CONVINCE YOU, ONLY TO INFORM YOU…

“Have I therefore become your enemy by telling you the truth?”

Tagged Under: Stock Market ,Fraud,Banks,Money,Corruption,Bankers

Don't Miss

Noted Investor Warns Trump If He Doesn’t “Shut Down” Entire Country for 30 Days

By StevieRay Hansen

Due to coronavirus, we will lose “America as we know it”… While a number of experts have already warned that the impact of the Wuhan…

Read More

Midtown Manhattan Bank Runs Out Of $100 Bills Amid Corona Panic

By StevieRay Hansen

With the stock market plummeting as the realities of the COVID-19 outbreak sink in, nervous New Yorkers flooded a Midtown Manhattan Bank of America –…

Read More

The Blood Bath Has Begun

By StevieRay Hansen

Don’t forget, the Spanish Flu pandemic lasted from January 1918 to December 1920.  Facebook Twitter Pinterest Email Fear of the coronavirus is causing shutdowns on a global scale…

Read More

Blain: “Step Back, Hunker Down, Get Ready…”

By StevieRay Hansen

“Vulgar, but not a vulgar as Louis Vuitton, thought Sherman.” Perhaps it’s time to think about the unthinkable and close markets for a few weeks? …

Read More

We Just Witnessed The Largest Single Day Stock Market Point Crash In History (Again)

By StevieRay Hansen

It has happened again.  On Thursday the Dow Jones Industrial Average fell 2,352 points, which was the largest single-day stock market point crash in history. …

Read More

Fear Of The Coronavirus Is Causing A Stock Market Apocalypse

By StevieRay Hansen

This day is here– get ready, the virus WILL spreads throughout the US and Europe, governments will respond the same way China’s government has; martial…

Read More

A Shift In The Global Financial Order Is Upon Us

By StevieRay Hansen

The collapse in bond yields, exacerbated by the crash in oil prices, marks an end to the era of trust in central banks… OPEC+: A…

Read More

Global bank on lockdown as JPMorgan tells employees to work from home

By StevieRay Hansen

Preparing for the worst, America’s largest bank is going on lock down to prepare for the coronavirus. It’s all part of JPMorgan’s “virus contingency plan” that calls…

Read More

“We Have Never Seen This Before”: The Last Time The Market Did This, FDR Confiscated All The Gold

By StevieRay Hansen

To say that moves in the US stock market have been erratic in the past two weeks would be a prodigious understatement: with the Dow…

Read More

The Biden Bounce: Dow Futures Up 666 As Traders Forget About Panicking Fed

By StevieRay Hansen

Biden + 666 maybe the same, EVIL… Futures have staged a miraculous recovery after yesterday’s historic drop – the biggest ever on a day when…

Read More

StevieRay Hansen

Leave a Comment