Excerpt from Trump’s beloved market rally gets walloped by the coronavirus
By BEN WHITE - 01/27/2020
Chinese consumer spending is likely to take a hit, according to analysts.
The Wuhan coronavirus is starting to infect President Donald Trump’s beloved market rally.
The president weighed in on the coronavirus Monday just as markets tumbled worldwide, including a drop in U.S. stocks that erased this month’s gains. Meanwhile, China’s financial regulators said they will suspend trading on the Shanghai and Shenzhen stock exchanges for a longer period of time after a long holiday as fear over the extent of the outbreak spread.
An out-of-control virus — now thought to spread through human to human contact — has long been among the most terrifying prospects both for the general population and for investors worried that some external event could bring to an end one of the most powerful market bull runs and American economic expansions on record.
“I don’t see falling estimate changes for economic activity or earnings. It is as if markets say, a few people have a cold so what’s the big deal? It’s a puzzle,” Cumberland Advisors chief investment officer David Kotok said before the sell-off gripped markets over the weekend.
“I feel there is more correction ahead,” he said Monday morning. “This is not a simple scenario.”
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