I think the market's dives today (actually started last week) is 100 percent because of the virus. What hit traders and investors starting late last week - before the Nevada primary - is that the after-effects of the virus are going to be extremely long lasting. I think that there are two If-Thens that have permeated the market players:
After the virus has has faded away, there will be permanent effects on supply chains coming out of Asia, especially, of course, China. That the virus originated in China is bad enough. That the Chinese government is losing worldwide trust concerning its origin and status is going to cause reactions from western corporations that heretofore would have been regarded as extreme. These dislocations will ripple through markets for a long time to come.
The virus does not fade away. That this virus could continue to spread with no end in sight for a very long time is quite possible. If that turns out to be the case, there is nowhere for the markets to go but down. Way way down.
I hope I am wrong, but right now I say we ain't seen nuthin' yet.
Donald Sensing
No worries. The ADHD President who doesn't read and watches TV all day is on the job keeping America great.
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