Market madness or the new norm?

Shoulder shrug!

U.S. markets have pretty much shrugged off everything that’s been thrown at it for some time now – and markets are likely ignoring the carnage the coronavirus could bring.

It does seem utterly astonishing to me that U.S. markets are trading at near all time highs despite the direct concern the virus presents to global markets.

Why are markets ignoring the virus

Could it be the FOMO effect – ‘Fear of Missing Out?’ Or greed? Or could there be a simpler reason? Where do you put your money to get a reasonable return, especially with savings rates permanently so low? I guess you take a risk with equities to chase a higher return.

The bull just keeps on running and where else can you earn this sort of return? This is most likely why markets continue to march ever higher.

And, investors now know that central banks are happy to intervene to prop up markets too.

Is the Coronavirus about to bring the Dow down?

U.S. markets have faced down many concerns recently including; presidential impeachment, a high ranking Iranian military commander’s killing, an Iranian missile attack on a U.S, base in Iraq, an attack on a Saudi oil facility,oil tanker attacks, a trade war with China, even Brexit and now there is a new threat about to take on the markets – the coronavirus.

But, despite all of this and more, the Dow, S&P 550 and Nasdaq have all marched ever higher to set new records!

Now for the good news…?

The U.S. markets have recently enjoyed a plethora of positive financial news including; high employment levels, a better than expected reporting season, low jobless claims, the signing of a U.S. – China Phase One trade deal, recent GDP data better than expected and China halving tariffs on hundreds of products and even fiscal stimulus from the Federal Reserve.