Dow Jones Price Drop & The Corona Virus?

[awik p]

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.

most countries that have legalized it, use crypto as an alternative payment method. and Fiat still seems to be the main payment instrument. Besides ATM, I think many markets still use fiat as the main payment tool, and they only facilitate crypto payments

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[TravelMug]

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.

And yet after almost a month now, it is still the same FUD about the virus.

Currently we have seen traditional market and bitcoin itself plummeting to -3%--5% because of the scare.
But I don't know if this is intentional or who are the bad entities behind the said FUD. Yes, it really amazes us how an epidemic can be used as a tool to create a lot of fear amongst investors.

[Kemarit]

This are now the overall picture:

81282 -Infected
2770  - Deaths
30019 - Recovered
45 - Countries / Regions affected

https://thewuhanvirus.com/

So the number of infectious grew exponentially, and obviously, China's economy is taking a hit, while globally this epidemic has taken it's toll as some companies are closing down their businesses as well.

Bitcoin for instances has lost it's critical support of $9500 because of the latest wave of news coming in that several countries has also started to see their first cases of the virus. But to be fair, everyone is getting hit yesterday, but it goods that S&P is just down less than 1% today. But crypto is getting REKT, as Bitcoin is on the slide, 5% at $8700.

[mrquackquack]

Along with Metals, Digital Currency should see a rise in worth. Any thoughts on this? The Dow Jones still suffered a 100+ Point Drop after a strong start, so seemingly investors are still very skeptical.

[STT]

The virus itself will not cause a recession, its not lethal enough.  There is an effect but its not the cause of entire nations withdrawal.    What the problem might be is that the effect is enough to unbalance and release problems already existing in economies such as QE programs never unwound and neutralised.     The Federal Reserve rightly or wrongly has created a certain level of inflation to counter the possible debt problem and a spiral into deflation, when this small restriction to world trade comes along and production lines are slowed or stopped and altered from normal it could lower the desired benefits to loose monetary policy.
   We have that underlying weakness already and possibly this virus disruption could cause the upset to knock over a few dominos in those already financially weak with excess debt not just materially susceptible to the infection itself.

Basically no one wants to go to China now.

China is a large country and I dont think this is going to alter things long term, of course they should tighten food hygiene and live stock conditions but the aversion is more of a disruption then a halt in trade.   Normally it should resume later and with backlogs to bring future success again but it might cause secondary effects to weak companies or trading situations, thats the greater fear I think and not yet fully realised probably.

[mrquackquack]

Another Massive Drop in The Dow Jones with Bitcoin under 9k USD and The CoronaVirus is still spreading... What's next?

[Juggy777]

The virus itself will not cause a recession, its not lethal enough.  There is an effect but its not the cause of entire nations withdrawal.    What the problem might be is that the effect is enough to unbalance and release problems already existing in economies such as QE programs never unwound and neutralised.     The Federal Reserve rightly or wrongly has created a certain level of inflation to counter the possible debt problem and a spiral into deflation, when this small restriction to world trade comes along and production lines are slowed or stopped and altered from normal it could lower the desired benefits to loose monetary policy.
   We have that underlying weakness already and possibly this virus disruption could cause the upset to knock over a few dominos in those already financially weak with excess debt not just materially susceptible to the infection itself.

Basically no one wants to go to China now.

China is a large country and I dont think this is going to alter things long term, of course they should tighten food hygiene and live stock conditions but the aversion is more of a disruption then a halt in trade.   Normally it should resume later and with backlogs to bring future success again but it might cause secondary effects to weak companies or trading situations, thats the greater fear I think and not yet fully realised probably.

@STT you’re correct as the virus has initiated a chain of events that’s going to effect the economies of all the countries either directly or indirectly, and the only thing we can do at this stage is pray that normalcy resumes quickly in China otherwise we all will witness long periods of recessions.

Sources :

https://www.reuters.com/article/us-china-health/world-prepares-for-coronavirus-pandemic-global-recession-forecast-idUSKCN20M069

https://edition.cnn.com/2020/02/26/economy/coronavirus-recession-consumer-spending/index.html

Another Massive Drop in The Dow Jones with Bitcoin under 9k USD and The CoronaVirus is still spreading... What's next?

@mrquackquack if the virus continues to spread at current rate then I’m expecting the markets to further tank, and I may consider buying few stocks if I can get them at a cheaper rate than their actual valuation. However many analysts are advising against buying stocks now, so do your own research before you buy your desired stocks.

Source:

 https://www.ccn.com/heres-why-this-is-not-stock-market-dip-you-want-to-buy/

[tbone777]

This virus will cause new recession due to fear about it

[mrquackquack]

This is getting crazy, it's around an 800 point drop as of today. I would be skeptical to buy stocks even at this price point.. Careful is the word to say the least in these situations.

[Broly46]

This is getting crazy, it's around an 800 point drop as of today. I would be skeptical to buy stocks even at this price point.. Careful is the word to say the least in these situations.

This is some perversion going on, I had cleared all my position on the DOW in priori. The enlightenment to me is that bitcoin are holding surprisingly well, it certainly earn the title of good hedge against meltdowns.

[mrquackquack]

And you as a person with more first hand experience on the Dow Jones and stocks in general. Whats next? Does one buy into the crazy drop or do you think most investors are in panic mode and won't invest anymore? You have all of these prolific people including the president telling you to buy the dip but it keeps dropping and not just a little bit quite heavily. A sensible person would think, ok its the Dow Jones, of course it will rise again but most people in this era of trading so on and so forth may have never seen such tumultuous price swings. Its almost Bitcoin esque. Can you imagine some of the investors in this debacle so far? Some of them may have be completely ruined in the matter of just a week.

[Lomberjack]

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.

I am going to refute that because the virus has something to do with the market, one good example is Apple closing some of their stores in China, another one would be global panic brought by media that the virus has a high lethality which in turn can cause panic selling of stocks, if you check out any stock market chart with news right now there is a high chance that corona virus are affecting the recent plummet.

[STT]

This virus will cause new recession due to fear about it

The only thing we have to fear is fear itself - Franklin D. Roosevelt  March 4th 1933

Most of the sell is in anticipation just like the prices previously were bid up in forecast of plain sailing and good business, the fear is an in alteration to that best case scenario.   BTC is subject to loose money flows so has some connection but I dont see it has to follow a parallel course, its effected by sentiment in the bids and top end prices which is fair as the greatest gains come via the easy money atmosphere QE has produced and the virus fears are now countering.



We are teetering on the edge of the 200 day average, it can rise or fall and take far longer to recover pricing if sentiment is more greatly effected.   I see some bounce possible in main indexes and I think BTC will catch a bid upwards also, how long that lasts or our direction over months could be different but I think its reasonable we get action above the 200DMA marked in yellow here.

[bitgolden]

The real trouble with the dow jones turned out to be the short term gain long term lose idea they had with the tax breaks.

Normally, they got a total of 1 trillion dollars tax break and meanwhile they also showed a lot of profits which increased dow jones of course because they were not paying taxes and they "looked" like they were profiting but in reality they were the same company and everything was same only with exception that Trump didn't take taxes from them which helped them in the short term. Now that those days are over and they are simply just another company the price of their shares showed it because investors realized that these profits will not continue forever and was only for that moment.

[Sadlife]

Stocks has been in a parabolic rise since the great depression , so what we're seeing now is only a short term or maybe a massive correction. Just by looking at the charts we know that this unhealthy rise due to manipulation and low interest rates must come down eventually, so the dump is not about coronavirus.

[naomi-the-cat]

This virus was just a trigger. Everyone was talking about new crisis more than a year before

[Strongkored]

This thread created almost 1 month ago, first I don't think corona will affect the economic global but I'm wrong, My country safe from Corona until now but the stock market down rapidly. Tourism is very declining, my friend is living in the tourism area and he said that the place began to experience a decline in visitors, the impact was very unexpected.

[Twentyonepaylots]

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.

And yet after almost a month now, it is still the same FUD about the virus.

FUDs like this is a crap. Things like this really affects the virtual world because virtual world is running under human. The world health is at expense right now, total cases already raised to near 100,000 and have caused nearly 3000 deaths. It does really affects the economy especially in China, we haven't seen the effects yet but we'll be able to see it in the long run.

Currently we have seen traditional market and bitcoin itself plummeting to -3%--5% because of the scare.
But I don't know if this is intentional or who are the bad entities behind the said FUD. Yes, it really amazes us how an epidemic can be used as a tool to create a lot of fear amongst investors.

I'm not saying that this is because of corona virus, the virus started spreading in late 2019 until now, bitcoin's price reached $10K so there is no reason to tell that it is because of the corona virus. But seeing the rising toll of cases is somehow affecting the virtual world. We will not know if the owner of such address died due to the virus.

[betty11]

There is so much fear and uncertainty in the global market because of the outbreak of the Coronavirus and its deadly impact on lives, so people are scared of what might happen next, so they are trying to play safe by offloading their equities, no one knows what next.

[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.

All markets dropped during the last week and are still dropping right now. People with shaky hands get rid of their stocks, because they fear the impact of the coronavirus on the world economy. This might end up in even a bigger crisis than the finance crisis a few years ago. Nevertheless, if you own some solid dividend stocks don't worry, it might take a few years for them to recover this crash but for sure their value will be higher in the future. This is not the end guys.