Lee Munson And Ron Insana Talk Corona Meltdown On CNBC's PowerLunch

It's great to be back on CNBC's Power Lunch discussing the huge one week selloff. Let me be clear, I'm a bull. I did some buying this week for the usual 5 and 10% corrections. But, we have some big issues that are both rare and serious.

First, we are contending not with a financial or political issue (those are easy!), but a change of behavior. Put another way, the cure to prevent widespread contagion is to stay away from other people. This will reduce consumption. Period. Second, I expect this to blow over by summertime. But if we get a few months of school closings and big events cancelled, it won't create pent up demand as I have been saying earlier this week, it will mute demand.

That is why I'm taking a rare step not seen since September of 2008 when Lehman went under. So, what exactly am I doing differently? I drew a line in the sand and will not consider any more dip buying until we see a full 20% correction on the S&P 500 - around 2750.

00:06:56

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Old Time Investor 3 months ago Member's comment

Things are going to get a lot worse before they get better. It's been a long time since the world saw a real global pandemic.