What Is The Market Telling Us About Coronavirus?

The media continues to send out articles suggesting that the coronavirus is a massive problem that could wipe out a large portion of humanity. I can’t help wondering that if that is actually possible, why has China’s stock market fallen less than 10%.

In fact, the recent correction in Chinese stocks induced by the coronavirus outbreak (blue rectangle) is virtually indistinguishable from any number of other corrections Chinese stocks have staged in the last few years.

If I had not specified which of these was related to coronavirus would have you have been able to tell?  

I am not making light of this situation at all. Anytime people lose their lives over illness, it’s a terrible thing. But the Chinese stock market is showing us that idea that this is start of some kind of extinction level event is ludicrous.

Meanwhile, stocks in the U.S. have hit new all-time highs.

I believe this is because the market is “showing” us that President Trump is going to win the 2020 election in a landslide. 

The Trump administration has successfully “branded” the stock market. As such, stocks are closely aligned with the President’s odds of re-election in 2020.

Which is why, this recent breakout to new highs is telling us Trump wins 2020 in a landslide… and that this time there will be few obstacles to his economic agenda.

Now is the time for smart investors to start moving capital into those areas of the market that will experience the biggest returns based on the Trump administration’s economic agenda during his second term.

Best Regards

Graham Summers

For more market insights and investment ideas, swing by our FREE daily e-letter at www.gainspainscapital.com.

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