Global central banks made a coordinated move this weekend. We now wait for the U.S. government to make theirs.
During such volatile times, markets will have days where it plummets and other days where it spikes – just see last Thursday where the Dow fell over 2300 points, just to rise nearly 2000 the next day.
There is currently an information gap where the duration and extent of the slowdown is not known, so participants go by their own worse case scenarios when trading. Once we get data releases, this information gap should shrink.
Additionally, the markets need to see the following to help it calm down: First, testing, and second, containment and the reduction of the spreading. So, these next two weeks will be critical.
Lastly, don’t let market movement dictate how you feel about the coronavirus. Meaning, down days do not mean the end of the world and up days do not mean that the problem is solved.
Stay safe. Social distance. Stay home as much as you can, and we will get through this.
This has been your Weekly Market Minute, and we’ll see you on Monday – prefer to listen or watch? Check out our video & audio formats below:
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