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Will the market improve as Corona subsides?

Posted on 3/19/20 at 7:00 am
Posted by tigerpawl
Can't get there from here.
Member since Dec 2003
22290 posts
Posted on 3/19/20 at 7:00 am
Should we expect a direct and inverse correlation between the stock market and the subsidence of new cases of the coronavirus? It’s a simple question.
Posted by Tigerlaff
FIGHTING out of the Carencro Sonic
Member since Jan 2010
20868 posts
Posted on 3/19/20 at 7:13 am to
Yes
Posted by Shepherd88
Member since Dec 2013
4584 posts
Posted on 3/19/20 at 7:17 am to
I think as soon as the market realizes that not that many people are actually getting this then the market reversed course.
Posted by Boatshoes
Member since Dec 2017
6775 posts
Posted on 3/19/20 at 7:19 am to
quote:

Should we expect a direct and inverse correlation between the stock market and the subsidence of new cases of the coronavirus? It’s a simple question.


No.

There are too many other moving parts from how global supply chains will be fundamentally restructed, which bankruptcies are coming, and what the disease burden next winter looks like.
This post was edited on 3/19/20 at 7:20 am
Posted by BobRoss
Member since Jun 2014
1694 posts
Posted on 3/19/20 at 7:20 am to
Dude, we're in for more pain. When we start actually testing people and the extent of this thing sinks into the skulls of the mouth breathers you will see more selling.
Posted by RJSambola
Member since Jun 2012
318 posts
Posted on 3/19/20 at 7:22 am to
But the CFR will fall along with more testing, which should lower the fear some
Posted by Ron Cheramie
The Cajun Hedgehog
Member since Aug 2016
5141 posts
Posted on 3/19/20 at 7:25 am to
Much more pain coming. The reason there isn’t more cases is because not everyone has been tested. I personally don’t know one person that has been tested
Posted by SLafourche07
Member since Feb 2008
9928 posts
Posted on 3/19/20 at 7:30 am to
Do you know anyone that has needed to be hospitalized?
Posted by Shepherd88
Member since Dec 2013
4584 posts
Posted on 3/19/20 at 7:38 am to
LINK /

10% of those tested have tested positive, way less than what was pumped up by the media. On top of that, those who have been tested so far were the ones needing it done the most, the first responders, and those who were displaying symptoms.

A country with 1.6 billion only had 80k infections and 3k deaths. Another country only 100 miles away of 1.4 billion (India) has only had 400 infections. Turn the damn news off bc it’s lying to you.
This post was edited on 3/19/20 at 7:41 am
Posted by BobRoss
Member since Jun 2014
1694 posts
Posted on 3/19/20 at 7:51 am to
Maybe you aren't understanding the gravity of the situation. The issue is we're not all going to die, the issue is our healthcare system being overrun.
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
71050 posts
Posted on 3/19/20 at 7:53 am to
It should. Consumer demand isn't going anywhere.

I don't see it going all the way back to 29k but it shouldn't have been that high in the first place.
Posted by tigerpawl
Can't get there from here.
Member since Dec 2003
22290 posts
Posted on 3/19/20 at 7:57 am to
quote:

10% of those tested have tested positive, way less than what was pumped up by the media. On top of that, those who have been tested so far were the ones needing it done the most, the first responders, and those who were displaying symptoms.

A country with 1.6 billion only had 80k infections and 3k deaths. Another country only 100 miles away of 1.4 billion (India) has only had 400 infections. Turn the damn news off bc it’s lying to you.
I'm a statistics and probability guy. I still don't get it.

56% of the 50 states still reporting 0 (zero) deaths.
55% of all US cases confined to 3 states.
Average deaths per state (back out high state and low state): 1.8
Posted by Shepherd88
Member since Dec 2013
4584 posts
Posted on 3/19/20 at 8:27 am to
Then maybe this Stanford professor is correct and we’re going to realize we massively over reacted to this.
LINK
Posted by bod312
Member since Jul 2015
846 posts
Posted on 3/19/20 at 8:54 am to
The issue isn't the amount of people infected or the amount of people dead. The issue is that we have essentially shut down a large portion of our economy in order to limit the numbers from getting much much worse. The question should really be how quickly will the economy pick back up and what are the longer term effects of shutting everything down for an extended period of time. We also don't know how long everything will be shut down.
Posted by mule74
Watersound Beach
Member since Nov 2004
11298 posts
Posted on 3/19/20 at 9:02 am to
quote:

I think as soon as the market realizes that not that many people are actually getting this then the market reversed course.


That should be the case but I don't think so. I don't think the market is pricing in the virus. I think it's pricing the economic damage form the shutdown. As long as the government keeps a significant portion of the economy shut down, we're going to remain in this turmoil.

It's already clear that this virus is not that bad.
Posted by Lgrnwd
Member since Jan 2018
5234 posts
Posted on 3/19/20 at 9:03 am to
The corona virus was just the pin that burst the bubble. Once the bubble is popped it doesn’t matter what happens to the pin.

Regardless of what happens with the virus there will be more pain ahead for investors before things get better.

Of course we will have some face ripping bear market rallies here and there. But the ultimate low is not in yet.
This post was edited on 3/19/20 at 9:04 am
Posted by rintintin
Life is Life
Member since Nov 2008
16178 posts
Posted on 3/19/20 at 9:10 am to
quote:

The issue isn't the amount of people infected or the amount of people dead. The issue is that we have essentially shut down a large portion of our economy in order to limit the numbers from getting much much worse. The question should really be how quickly will the economy pick back up and what are the longer term effects of shutting everything down for an extended period of time. We also don't know how long everything will be shut down.


This

I think the current market conditions are due directly to the virus. We have barely begun to see the actual economic indicators of how much this will affect the economy.

Today was the first report of jobless insurance claims increasing. I expect we'll see unemployment rise, company earnings decrease (in some industries drastically), and overall GDP to decrease. Once these numbers actually come out the market will not react favorably to them.

Now much of it could already be priced in, but we don't know how long this will last. This unpredictability is what's gonna keep driving the market volatility for a while.
Posted by tigerpawl
Can't get there from here.
Member since Dec 2003
22290 posts
Posted on 3/19/20 at 9:14 am to
quote:

The issue isn't the amount of people infected or the amount of people dead.
If this "The issue isn't the amount of people infected or the amount of people dead.", then why this??: "...we have essentially shut down a large portion of our economy in order to limit the numbers from getting much much worse.". It doesn't add up. A bit contradictory, wouldn't you say?
This post was edited on 3/19/20 at 9:23 am
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 3/19/20 at 9:14 am to
quote:

I think the current market conditions are due directly to the virus. We have barely begun to see the actual economic indicators of how much this will affect the economy.
For me, the good news is the economy will bounce back quicker than it normally does during a slowdown.

The pent up demand plus the relief that most people will feel for having weathered the storm will have them out shopping, eating and buying stuff again.

I know I can't wait to go eat out. I may even buy a new car.
Posted by bod312
Member since Jul 2015
846 posts
Posted on 3/19/20 at 9:17 am to
quote:

If not "The issue isn't the amount of people infected or the amount of people dead.", then why this??: "...we have essentially shut down a large portion of our economy in order to limit the numbers from getting much much worse.". it doesn't add up. A bit contradictory, wouldn't you say?


This is not a money question then but a politics or OT question so this would be taking it to a different board. I think most people think the numbers will get worse as we are not close to peaking. I think most "experts" would say we are taking a proactive approach. If we did not take drastic actions the numbers would be scary. If we did nothing what would the infected and death tolls be and then what would the long term effects be?
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