The stock market has never failed to recover from even the most catastrophic events. That includes the Great Depression, World War 2, the Tech Bubble, 9/11 terror attacks, the housing crash and the financial crisis of 2008. It’s a long list of turmoil and devastation – yet – the stock market recovered every time. I expect the same to happen with coronavirus.
After a brutal four weeks, global stocks finally broke the losing streak and had one of their best weeks ever – with the S&P 500 up 16% from the recent low. Now, investors want to know – is this a head fake or is the selloff over? Today I am going to reveal the answer and provide guidance on how to move forward.
The Covid story is loaded with highly questionable government data, a quickly growing death toll and conspiracy theories that look more like reality every day. Best case scenario: Covid 19 is an aggressive form of the flu. Worst-case scenario: This is a man-made bio weapon with the ability to end human civilization within a few years.
2019 was an excellent year for global and US stocks. However, despite my expectation for some short-term volatility – I am expecting another solid year for US and global stocks. At the highest level, when stocks have a monster year like 2019 it usually leads to another good year. Here are some more details from CNBC.