Foxdog,
""I still don't understand the reaction to COVID 19 and the incredible sell off in world markets.""
Equity markets around the world were all at record level highs and going gangbusters. Companies were all enjoying high P.E's becuase they were showing good profits. There was no reason to sell shares because basically the world was in good shape. The market was looking for a reason to sell and suddenly it was given a very good excuse to sell out. When Italy went from having less then 10 infected people to over 300 in a couple of days that sounded the alarm bell . Before then most thought it was being contained and the problem existed mainly in China. The only other problem was a luxury liner in Japan which only affected those on board.
The fact that over 8000 people alone died in the U.S last year from the common flu is irrelevant. The world always looks for a reason to sell out. and until now it didn't have one. Interests rates remain very low and property prices are very high so eventually the money will find it's way back into the market but it wants to see some inroads that this virus can be controlled to some degree. The Italians were lax with their approach to this problem and now they are paying a heavy price which could see this country dip into recession becuase they rely so much on tourism.
Fair to say the shorters in the U.S are having a field day.
In my honest opinion I believe all shorting in all countries should be banned whilst this situation is currently going on. That would be the sensible and astute thing to do by the authorities. It might still happen if things get out of control. It's about being active and not reactive. But thats another story for another day..
Cheers.
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