Coronavirus Chaos: You HAVE to Buy This Dip
The S&P 500 Index plunged 12% last week as fears of a coronavirus outbreak dominated the news.
It was the worst week for the stock market since the 2008 financial crisis.
In today’s special 16-minute Market Insights, my colleague Jeff Yastine and I break down why you absolutely have to be a buyer right now.
Stocks are down 16% from their all-time highs.
This was the steepest correction in history. Yet the economy seems to be doing fine.
Unemployment remains at a historic low. There’s no recession in sight.
And as we saw in the past, outbreaks such as SARS and the swine flu weren’t as deadly as many had feared. That seems to be the case again today with the coronavirus.
That makes this an incredible buying opportunity for smart investors.
The Federal Reserve is expected to make rate cuts.
According to the FedWatch Tool, there’s now a 95.5% probability that the Fed will cut rates at least three times this year.
Some analysts even expect rates to drop to 0% for the first time since 2014.
That’s great news for the stock market, and it’s partly why stocks moved sharply higher today.
Some tech companies are well-positioned.
For example, teleconferencing companies such as Zoom Video Communications Inc. (Nasdaq: ZM) help businesses function like normal without the risk of catching the virus.
E-commerce companies such as Amazon.com Inc. (Nasdaq: AMZN) benefit from consumers choosing to avoid crowds by staying home and shopping online.
And streaming companies such as Netflix Inc. (Nasdaq: NFLX) gain subscribers when people avoid movie theaters and other public areas.
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My career on Wall Street started while I was in college. I spent a summer interning for Merrill Lynch in the middle of the ‘90s bull market. I was fascinated with trading, and as a result, after college, I joined Salomon Brothers in the famed mortgage bond trading department. Later, I spent time at Citigroup working with credit derivatives. Eventually, I needed to walk away from the excess of Wall Street. That’s when I joined Banyan Hill in 2017. Now I help readers get ahead of the market and build their retirements.