Why You Shouldn’t Be Worried Sick about Coronavirus Headlines

As part of the transition to the new Straight-Up Profits newsletter, I’m going to be doing something a little different on Mondays.

From now on, I’m going to start the week off by alerting you to the biggest distraction in the market for the week to come. This will be what’s grabbing all of the headlines that the “Big Four” hope will take all of your attention.

But once you know where they want you to look, you’ll be ready to overcome the sleight of hand and reap the real rewards.

This week’s biggest distraction is the outbreak of a new strain of coronavirus in China. And a big distraction it is…

From a regional perspective in Asia – it is a major issue. The number of confirmed cases jumped ten-fold over the weekend.

The news is following every development, and markets took a tumble last week and this morning. All of the gloom, doom, and panic, is enough to make you want to pull your money out of the market and run for cover.

But here’s why you shouldn’t…

This virus, even at this point of the outbreak, is much less deadly than Ebola or even SARS were. For issues like this, we have to look at BOTH how widespread the disease is (that’s significant and not yet slowing) AND how acute it is. And so far it is a definite concern, but the mortality rates are an order of magnitude lower than for Ebola and SARS. There will likely be short-term pain, but markets will recover. This will be a buying opportunity, not the beginning of World War Z…

More on that later this week.

With all the distraction, you’d be hard-pressed to find any mention in the media that this week and next will be huge for earnings reports. This week alone, 14 out of the 30 companies in the Dow index and 141 out of the S&P 500 companies report earnings. That includes huge tech companies like Amazon.com Inc. (AMZN), Apple Inc. (AAPL), Facebook Inc. (FB), and Microsoft Corp. (MSFT). And there’s more coming next week.

It’s quite likely that these earnings reports will override concerns about the Chinese outbreak and bring the market back to following the positive fundamentals. That could be the turning point for the market and an excellent buying opportunity.

Great trading and God bless you,

D.R. Barton, Jr.

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The fact china said last week they are rapidly building a thousand bed facility. The media in china is covering up! the us cases last week till now a dozen with a five day incubation this number can jump rapidly. Having spent twenty years training for a pandemic. the usa ebola case involving akron, ohio was three miles from me. you may want to use caution in your remarks . go and look for masks and check out emergency food it is starting to disappear Amazon one supplier of mmasks is now back ordered https://www.amazon.com/gp/offer-listing/B07XQ7193C/ref=olp_twister_all?ie=UTF8&mv_color_name=all&qid=1580213654&sr=8-39

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