Every storm EVENTUALLY runs out of rain. The coronavirus started out as a non-event for U.S. equities, which, for nearly two months, kept climbing into all-time highs, despite reports from China. The comparisons made to SARS, Ebola and MERS caused investors to assume that this was a NOTHING-BURGER, but then contagion caught on and the tides TURNED so quickly that we saw the FASTEST AND BLOODIEST bear market slam in history.
In the past month, my main message to you has been that we’re living IN A NEW WORLD. The sooner you internalize that fact and think in terms of innovating your current set of circumstances and IMPLEMENT it, it will be better off for you.
The coronavirus has now reached all but a few islands in the Pacific and the Caribbean Sea. It’s everywhere and it KEEPS ON SPREADING. Italy has declared martial law, and I believe SEVERAL major cities and states in the U.S. will UTILIZE the same method starting this week; discipline to guidelines is still not perfect.
This cannot be reflated; we are EXPERIENCING hyper-deflation. What we’re seeing is the 2008 IMPLOSION with a 12-yr delay. Treasury Secretary Mnuchin has said that the markets will stay open, but it’s UP IN THE AIR right now, in my opinion. Markets could be closed for weeks.
Coronavirus is now, QUITE HONESTLY, one of the worst disasters to come upon the human race since WW2. The quantity of casualties worldwide is less than 7,000 – which, compared with the 50,000 deaths a day caused by malnutrition, the 400,000 deaths a year caused by smoking, and the hundreds of thousands of deaths every year caused by car accidents and alcoholism, is NOTHING, but the prevention of further spread comes at an unbearable cost to economies.