Opinion

Coronavirus Fears

Stocks are off by about 3% this morning (as of noon on 2/24/2020) on fears that cases of coronavirus are accelerating outside of China.  Should you worry?  For the “general American public“, the answer is no.  Does that mean that only an idiot would be concerned by this?  No.  Identifying and dealing with threats is how humans have survived as a species.  It’s normal to watch the news, worry, then talk to someone about it. China China’s position as not only a supplier of goods, but also as a newly dominant source of demand for goods is a twist, though.  I will be watching Apple stock as a proxy for this story.  A good amount of Apple stuff is dependent on the Chinese supply chain.  The rising Chinese middle class loves the iPhone.  Also noted is that the ‘Trade War’ between the US and China may have softened the blow…

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ONE TRILLION DOLLARS *pinky*

The Trade War™ wiped over ONE TRILLION DOLLARS from the stock market on Monday.  Will the market ever recover from this disaster?  It turns out that a trillion bucks ain’t what it used to be.  Financial reporters showed Monday’s market movement as -2.41%.  Financial entertainers breathlessly echoed the ONE TRILLION DOLLARS talking point.  Being down over 2% in one day isn’t good, but it was a useful tool to separate news sources that are serious about their reporting from the click-bait farms.  Oh and will we ever recover?  The S&P 500 was down 0.11% on the week, as of Thursday’s close, but oddly we haven’t heard any stories of the market gaining ONE TRILLION DOLLARS over the last couple of days.  Weird. Trade War™ There is a lot of hand-wringing over the consequences of the very public negotiation with China.  Bad financial news of all sorts is inevitably traced back…