Stocks up – shrug of coronavirus
Stocks yet again set new records ignoring the potential threat of the coronavirus – (COVID-19). Despite the worrying number o uncertainties the virus brings with it, and there are many, stocks climb ever higher!
This may be for a number of reasons:-
- Central banks preparedness to act and prop up economies using interest rate cuts and monetary stimulus is never far away – it’s as if there is nothing to fear. Good news – bad news, bad news, good news. Never fear, a central bank is near.
- Investors have fewer options for their money, especially with such historically low interest rate for savers – making stocks much more attractive than saving. Where else can you get these type of returns?
- The Fear of Missing Out – FOMO
- U.S. stocks have also benefited from respectable earnings recently and from historically low unemployment
I don’t know what it will take to slow the march of U.S. stocks, but my fear is, it isn’t that far away.
Stocks at record levels – 12th February 2020
Dow closed at a record high of: 29551
S&P 500 closed at a record high of: 3379
Nasdaq closed at a record high of: 9726
Dax closed at a record high of: 13750
Higher or lower?
There is much talk of a ‘pullback’ and that there is a ‘correction’ coming – at these highs and with the backdrop of such an unknown as the COVID-19 coronavirus – it wouldn’t come as a surprise!
Who really knows!
U.S. markets seem content to ignore this potential looming global crisis..?