From Birch Gold Group
Market panic stemming from the spread of the coronavirus (COVID-19) around the world has already sent U.S. stocks into freefall this week.
As expected, concern about a potential “pandemic” is making the rounds in the media. According to World Health Organization (WHO) Director General Tedros Adhanom Ghebreyesus, “The number of new cases reported outside China exceeded the number of new cases in China for the first time.”
But the WHO Director cautioned against using the term “pandemic”:
He called for people to refrain from using the word ‘pandemic.’ An ‘epidemic’ is when a disease spreads through one or several communities; a pandemic occurs when a disease spreads throughout the world
The WHO Director’s conclusion that this is not yet a “pandemic” is positive news, of course. But the cases reported outside of China also include the 60 or so inside the United States. That’s where the economic impacts from COVID-19 could start to form roots.
The spread of the coronavirus paired with the trade war, rising consumer debt, increasing inflation, and a confused Fed could cause U.S. markets to remain “wobbly” for quite some time.
“Correction Territory” Could Be the Near-Term Norm
On February 27, the Dow Jones flirted with “correction territory” several times as the market appeared to be on “pins and needles” at every mention of the virus. It finally succumbed, down more than 10% from record highs at close of trading.
The day also marked the largest one-day point drop in the history of the Dow.
Sadly, this could be the norm in the near-term. The AP provided one possible explanation for the beginning of this new crisis:
The global economy was just stabilizing after wobbles caused by the trade war between the U.S. and China and fears of a disorderly British exit from the European Union. The coronavirus hit just as a U.S.-China preliminary deal and a Brexit withdrawal divorce agreement had boosted hopes for a modest upswing, particularly in Europe.
And Investor’s Business Daily hinted at a certain characteristic of COVID-19 that could make Q2 2020 “panic central” in the U.S. markets:
The coronavirus risks becoming a much longer and deeper threat to the global economy. Goldman Sachs says that the coronavirus impact on supply chains will be “nonlinear” if current trends continue. In other words, the impact will suddenly get worse in the second quarter as inventories run out.
At CNBC, more short-term concern was noted: “We’re extremely cautious in the short term,” said Tom Hainlin, global investment strategist at Ascent Private Capital Management.
Hainlin added, “No one really seems to be an expert on the coronavirus. We haven’t seen anything like this really in our investing lifetimes.”
To be clear, this also means the markets could return to “business as usual” in the near future. Nobody knows for sure. That’s exactly where the economic uncertainty with the coronavirus stems from.
Of course, this isn’t the first time the U.S. markets have entered “correction territory” either, as seen in the CNBC bar graph below:
Bottom line, the U.S. may be adding another bar to the graph above, so it’s a good idea to think about preparing now.
Do Your Best to Ensure Your Portfolio Doesn’t “Correct”
Short of a miracle, the next few months are likely to be a bumpy ride for the average investor. So it’s important that you take steps now to make that ride as smooth as possible.
Examine your savings, and think about how to minimize your risk exposure. Then, consider assets that can help preserve some measure of stability for the months to come.
Precious metals like gold and silver could help prevent your savings from succumbing to a correction of its own.
After 8 long years of ultra-loose monetary policy from the Federal Reserve, it’s no secret that inflation is primed to soar. If your IRA or 401(k) is exposed to this threat, it’s critical to act now! That’s why thousands of Americans are moving their retirement into a Gold IRA. Learn how you can too with a free info kit on gold from Birch Gold Group. It reveals the little-known IRS Tax Law to move your IRA or 401(k) into gold. Click here to get your free Info Kit on Gold.
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My working theories are as follows –
1) Most Likely – This is a Chinese fuck up where they accidentally released virus stolen from western lab;
2) Likely – This is Deep State release under cover of Chinese fuck up.
With regards to probable case #2, why would the (global western) Deep State do this? I keep going back to my oil & gas experience with Chinese, in that they are ALWAYS back at the table wanting to renegotiate a deal. What could this deal be that created this economic Frankenstein? Why, China’s entry as full member into the World Trade Organization on Dec 11, 2001. So, China gained immensely from this deal – at the expense of tens of millions of the western world’s middle class – but what we never hear about is what did they promise in return, and to whom did they make these promises?
The only group with enough clout to make the decision to let the Chinese into the club – and who has no compunction in throwing tens of millions of goyim under the bus – is the (((global money cartel))). And I’ll bet even money that the Chinks have reverted back to their original state of nature and have reneged on these original promises, whatever they are but likely related to (((global money cartel))) access to Chinese credit markets. So the virus is payback for a broken deal and thus the Chinese link in the global supply chain gets cut and the nation is starved of the foreign currency needed to keep its financial house of cards afloat.
“But why stop there?”, says the (((global money cartel))). Why not spread panic through the western world right when the Nativist movement is gaining traction. The (((MSM))) is churning up panic right before the election (funny how there is always a panic on election years). DNC primary will likely end in a no outcome brokered convention that everyone hates, so just cancel the election due to the logistics in a quarantined country and hand the role of electing POTUS over to a bought House of Representatives that will vote in the globalist puppet that the (((global money cartel)) most prefers. Voila! End of History makes a triumphant comeback.
Heads you lose, tails they win. No 4th Turning without complete destruction of the (((global money cartel))) and its enablers. Otherwise, same as it ever was…
Hyperborean,
You are always worth the time.
The propaganda is already starting…
https://abcnews.go.com/Politics/election-officials-scrambling-address-coronavirus-concerns-ahead-super/story?id=69255531
That’s not how the story ends for the Democrat crime machine.
2016-2020 was planned since 1910 as a Republican political boomerang. The country has been on lockdown since 1871 and the last 3.5 years was a slow motion treason convention ending in the ultimate IGNOMY for the DEMON-CRATS.
I covered that scenario back in Jan. In it, I speculated the Chinks were being taken off-line. And why not? We can’t pay them or even continue the payments on the treasuries they are holding. Back when we had that $800B rescue package at the end of the 2nd Bush term and we were paying that much to China, at least the trade deficit was that much.
I suspect Bush made a deal with the devil to get money for his war in the middle east. We thought if we kept the Chinks happy, and if we could also keep stringing Russia along…But then the Chinks got friendly with Russia. Hmm, time to bring Xi down a notch.
Russia has been down this road, Uncle Ronnie challenged them to a military spending match and they fell for it. They went broke. Now, they are waiting for the time when we spend ourselves flat broke like they did. They know it’s inevitable. That’s why they are hoarding gold, because dollars will be worthless after the US throws in the towel in one glorious revolutionary bloodbath.
Ofra bit her tongue and tripped while bullshitting that balance does not mean equal. Shit, they never bought the separate but equal argument and now she is trying to tell folks that the 1% owning most of the gold is equal to the net worth of the rest of the 99% combined so that constitutes ‘balance’.
The message the top weenies are selling is go the fuck to sleep. Hoax or no hoax, this is the perfect opportunity to sell the stock market, reap the profits of QE and head for the hills with the loot. Of course, they are not stupid, they will convert those soon to be worthless dollars into gold, whose price they have been suppressing so they can buy low and sell high later.
What power does a shitty Corona-Treasury virus have compared to say… a woman scorned?
https://imgur.com/8iU7xex
It was alarmists like ZH and Chris Martenson who have been harping doom porn.
Blame them.
And does this mean the Chinese are fired? How long have they been building our junk, 30 years? I am joking, I think.
Remember Crocodile Dundee? “That’s not a knoife! THIS is a knoife!”
13% off the top is not the market “tanking”. 80% is tanking. We’ll see what happens.
Could this be week #2 ?
The Dow mini this morning indicates it will open in the red (-160). It will be a long day.
Can the market take two weeks back-to-back of these huge losses?