Dow Jones Price Drop & The Corona Virus?

[fuer44]

first, a deadly virus that spreads in various countries will make its citizens die, then economic assets there (countries affected by the virus) will be in vain. meaning many assets but no users. maybe that's what causes the economy to weaken. and if it continues and there is no prevention and treatment, then the victims will continue to grow and the economy will weaken even more.

[FanatMonet]

Seemingly the latest news of the sudden Dow Jones price drop saga is aimed at "The Corona Virus". A little known about deadly virus causing death and despair. Amazing if true, how a  virus can effect the world's economies in such a way? Is it a cover up for something else? As usual any thoughts or comments are more than welcome.

The Corona Virus will hit the Economy of China for sure,but I doubt that it might hit the US or global economy really hard.After one month,the virus will be under control and we will forget about it.

I would like to have the same confidence as you, but the number of cases every day only increases, the vaccine will be ready, at least in a few months, if they do not miss the stage of clinical trials, and you are talking about month.

I think this outbreak will have a pretty serious impact on global markets.

[mrquackquack]

Haha.. Wow.. Could you elaborate on the "pull a cryptocurrency market"?

[Maslate]

first, a deadly virus that spreads in various countries will make its citizens die, then economic assets there (countries affected by the virus) will be in vain. meaning many assets but no users. maybe that's what causes the economy to weaken. and if it continues and there is no prevention and treatment, then the victims will continue to grow and the economy will weaken even more.

Corona virus which started in China had greatly affected their own economy and since this virus has already threathend worldwide, then it's very possible that those affected countries will also be facing an economic crash. Corona virus may not affect the crypto market indirectly but those people who suffer from corona virus may greatly affect the whole market.

[saifoufa]

first, a deadly virus that spreads in various countries will make its citizens die, then economic assets there (countries affected by the virus) will be in vain. meaning many assets but no users. maybe that's what causes the economy to weaken. and if it continues and there is no prevention and treatment, then the victims will continue to grow and the economy will weaken even more.

And suddenly it makes some other assets go higher, like bitcoin for instance.
It grew out of some strange twisted logic which I barely can understand.
But it surely does something with short players inflating the market at the moment.

[MinerHQ]

Where's o_e_l_e_o when you need him?  I'd like to hear his opinion about this, as I strongly suspect that this whole thing is being blown way out of proportion, just like SARS, swine flu, H1N1, and whatever other bugs have made the news in recent years.  Yes, they all can be deadly--but so can the regular flu virus.  

There's not just one corona virus, by the way.  It's a whole family of viruses, and they're nothing new at all.  One of the strains just happens to be a bit more deadly than previous versions, and even then it hasn't killed that many people.  I don't know the numbers, but I'd like to see a comparison of the death toll from this new corona virus with that of traffic accidents.

I also don't think any of this has much to do with the stock market, bitcoin, or any other investment unless you consider some pharmaceutical company stocks.  Whoever is working on a vaccine will probably see a bump in their stock, though it'll be temporary I'm sure.

If I'm not wrong, SARS total number of killed was around 779 and the percentage was around 10%. But corona number of infected people are very high but the percentage of death from this virus is not so high. With this low percentage itself already the death toll is around 500.


Source - thewuhanvirus.com/

As per the experts, the number of infected people even goes high for the next one to two weeks and later it may start slowing down.

This surely has a greater impact on the Chinese economy because it may take more time to eliminate this virus completely.

Cathay Pacific asks 27,000 employees to take unpaid leave as coronavirus outbreak hit demand - https://www.channelnewsasia.com/news/asia/hong-kong-airline-cathay-ask-staff-take-unpaid-leave-coronavirus-12395946

[Negotiation]

I do not know if the Dow Jones price drop will decrease but the coroner virus will hit the country's economy It will be a hindrance to global development. The coroner virus epidemic and its prevalence in Wuhan one of the largest cities in China has spread everywhere in the world Control should be done as soon as possible The condition of the markets will decrease the demand for Bitcoin will decrease.

[justdimin]

American economy being affected by china is such an indirect situation that maybe the problem is no longer about china but the way economy is shaped.

Dow Jones got high a lot and the american economy looked like booming, yet the only reason for that to happen was the fact that Trump made sure rich companies and rich people didn't paid too much tax and gave them a trillion dollar tax break, now that is amazing for the bigger picture of the economy because a trillion dollars at the hands of the companies would equal to more investments and more jobs and more profits, yet the companies mostly decided that it means more profits for the shareholders and they gave it away as bonuses to CEO's and the board plus shareholders and it was already done. Unless trump gives them another break, that was done and finished, now it will go back to how it was which will drop the price for sure.

[babygun]

There are more and more shops and factories closing in China due to the Corona virus (such as Apple, Nike, Starbucks, ...) but still the Dow Jones is very close to its ATH. I would expect that the stocks would be dropping day after day, but the inverse is true... Nevertheless, the economic impact will be huge and I still expect a correction in 2020.

[bitcoinst]

I do not see any other options for the development of the situation except for a full-scale fall in the markets and stock exchanges, in particular in China.
If I’m not mistaken, on Monday, during the opening of exchanges, China will throw a large amount of money into stock exchanges to compensate for the situation related to Black Monday.

I think that the stock market will pull a cryptocurrency market.

[mrquackquack]

Well seemingly the Corona Virus is spreading to countries where it is quote unquote supposed to be out of its "jurisdiction" and as of today the Dow Jones has dropped over 1,000 Points. Any thoughts or comments on future markets?

[wheelz1200]

Well seemingly the Corona Virus is spreading to countries where it is quote unquote supposed to be out of its "jurisdiction" and as of today the Dow Jones has dropped over 1,000 Points. Any thoughts or comments on future markets?

As long as there is uncertainty with this pandemic, the markets will show.  The metals market should do great.  I would jump into metals if you havent already, and then when the hysteria calms down money will flow back into traditional markets and out of metals.  I would feel perfectly fine shorting the stock market right now

[mrquackquack]

You're right about that. Gold and Silver have jumped dramatically over the past few weeks but back to the main focus 1,000+ point drop? Too much right?

[Tylev]

I do not see any other options for the development of the situation except for a full-scale fall in the markets and stock exchanges, in particular in China.
If I’m not mistaken, on Monday, during the opening of exchanges, China will throw a large amount of money into stock exchanges to compensate for the situation related to Black Monday.

I think that the stock market will pull a cryptocurrency market.

I see that the situation with coronavirus is gradually returning to normal. In China, the number of people infected, even though it exceeded 70,000, but this number began to decrease. Already more than 20,000 recovering. And this means that the coronavirus is not so scary. Therefore, global markets will soon return to normal.

[Kakmakr]

Seemingly the latest news of the sudden Dow Jones price drop saga is aimed at "The Corona Virus". A little known about deadly virus causing death and despair. Amazing if true, how a  virus can effect the world's economies in such a way? Is it a cover up for something else? As usual any thoughts or comments are more than welcome.

Nope, I have watched several videos of the potential impact that this virus might have on the global economy, if it went unchecked and the outlook looks bad, if nothing is done to stop it. This virus will cause more deaths in a short period, than what SARS and Swine flue has done over a much longer period.

You have to remember that government funding for other things are now also channeled to stop the spread of this virus, so large projects and tenders for other things are now cancelled and the economy are struggling as a result of that.

You also have large events being cancelled, like the Soccer in Italy that generates a lot of tourist income. In scenarios like this, your accommodation are cancelled and local bars and restaurants are taking a beating.

This is definitely not a cover up for something else, just a natural consequence of nature fighting back. The Chinese market created a perfect breeding ground for this virus, because it brings humans in close contact with infected wild life. 

[Google+]

I do not see any other options for the development of the situation except for a full-scale fall in the markets and stock exchanges, in particular in China.
If I’m not mistaken, on Monday, during the opening of exchanges, China will throw a large amount of money into stock exchanges to compensate for the situation related to Black Monday.

I think that the stock market will pull a cryptocurrency market.

I see that the situation with coronavirus is gradually returning to normal. In China, the number of people infected, even though it exceeded 70,000, but this number began to decrease. Already more than 20,000 recovering. And this means that the coronavirus is not so scary. Therefore, global markets will soon return to normal.

I think the USA has not yet fully received payment using cryptocurrency so at the moment I see ATMs there are still few means that there are still few people who use cryptocurrency.

if indeed the price falls like this then this can be an opportunity to buy as many coins as you can by utilizing conditions like this.

[Jeremy Franklin]

Seemingly the latest news of the sudden Dow Jones price drop saga is aimed at "The Corona Virus". A little known about deadly virus causing death and despair. Amazing if true, how a  virus can effect the world's economies in such a way? Is it a cover up for something else? As usual any thoughts or comments are more than welcome.

This virus is a huge threat for the industry world wide. If people are forced to stay at home and not going out anymore, they don't spend money, don't work which really punishes the economy. Its essential to reduce the impact of the virus as soon as possible, if we don't want to move straight into another economic crisis. I hope there will be a useful vaccination sooner than later.

[Linkkoin]

What are the harms to the economy which take place due to the plague? Of course it would depend on the amount of infected, deceased and whether there will be a ban on travelling imposed.

If companies will be heavily understaffed/not able to operate (travel ban/stay at home order), they will not be able to produce in their full capacity/at all (or there will be no effective way of transporting already produced goods). Therefore the companies will not be able to meet their contractual duties.
Example? The 1st world. hi-tech is in many elements dependant on the Chinese supply (rare soil minerals, elements produced in China and assembled in the West, successfully exported elsewhere).

Is it going to hurt Chinese companies? Sure! Is it going to hurt 1st world companies? Sure - imagine that a car/smartphone manufacturer cannot deliver for several months enough quantity of their products, as the supply of eg. screens or batteries thanks to the issues with China is insufficient. If their sales would drop thanks to that by 50% (due to insufficient supply of parts), this would be a real issue for the company related to the industry. And as often industries and hi-tech are examples of overall local economy condition, this would be a problem.

Next - internal consumption and tourism. In such a situation, the tourism would be badly struck thanks to the global panic - people will be afraid to travel abroad (or even in one country). As such, the services sector will suffer (empty restaurants, hotels etc.). And many regions or even whole countries live from tourism itself.

All these elements will be then published in reports by officials about industrial production, employment rate, GDP changes as well as corporations reports - what will take place in two months from now on.

Such bad news at the end of April can trigger a big sell-off on stocks, or even initiate a financial crisis (depending from casualties, travel ban and panic fueled by the mass media). But as this would take place close to the period of Bitcoin halving, we could expect BTC (and some other cryptos) to gain 10-15% daily because of the stock market panic.

[el kaka22]

I still can't believe we have about 8 billion people on earth and we are dealing with just 25k people infected and only 500 people dead and for some reason everyone thinks this is going to be end of the world.

Why is everyone so worried about a sickness that killed 500 people? You do realize that just from heart attacks there are millions of people dead every single year? From cancer there are another millions of people dying or dead as well? We are talking about a virus that killed only 500 when we are already dying from sickness in millions.

Cancer could be cured a bit but it is not really pushed towards a medical cure by the governments, if we invested the 2+ trillion dollars a year world spends on military towards medicine, AIDS, cancer, heart failures all would have been figured out by now, 500 would seriously be something important, but for now? It is nothing compared to real problems.

[mrquackquack]

Bitcoin is seemingly dropping too. You would think the Crypto market in such situations would rise.