“This is possibly the worst thing I’ve ever seen in my career,” Minerd said of the coronavirus outbreak, adding that he’s been through a lot including the stock market crash of 1987 and the financial crisis. -Guggenheim Chief Investment Officer Scott Minerd
- China, worlds second largest economy, is completely frozen.
- Global Manufacturing contracts most since 2009 (worlds largest economies affected)
- Goldman Sachs sees zero earnings growth from US companies this year
“Our reduced profit forecasts reflect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for many US firms, a slowdown in US economic activity, and elevated business uncertainty,” the firm’s chief U.S. equity strategist, David Kostin, said in a note to clients.
- coronavirus is starting to behave like the “once-in-a-century pathogen we’ve been worried about.” — Bill Gates
- expect global equities to tank by 30% to 40% this year. You have to hedge your money against a crash,” Roubini continued, adding that his motto is “Better safe than sorry!” – Global Economist Dr, Nouriel Roubini
- Coronavirus could spiral the stock market down another 30%: Deutsche Bank
- Gold has ‘immunity’ to coronavirus — Goldman Sachs
- The Coronavirus Has Put the World’s Economy in Survival Mode — New York Times
In an emergency meeting the Fed cut interest rates a half point.
“It’s great that the Federal Reserve recognizes that there’s going to be weakness, but it makes me feel, wow, the weakness must be much more than I thought,” ‘Unless the Fed can create a vaccine or beat the virus,’ rate cuts won’t matter -CNBC Jim Cramer