The markets continued their downward trudge this week as fears of a coronavirus outbreak in the U.S. worsened.
The death toll in the U.S. reached 14 on Friday, with more than 225 cases of Covid-19 being confirmed across the country.
But even with those increased numbers, there’s a major Reality Gap between the current perception of how widespread and prevalent the coronavirus outbreak in the U.S. is and how bad thing actually are.
You see, there’s been a major shift recently that has the potential to identify a far greater number of cases in the U.S.
In today’s market update, I’ll reveal what that catalyst is, and the severe impact it could have on the market.
And if that happens, you need to be prepared…
I’ll show you how to gauge investor sentiment and determine how traders feel about the market’s prospects going forward. I’ll also point out the level at which – if the market drops that far – you may want to consider pulling your long-term, nest egg money out.
And finally, I’ll give you a few recommendations on where you can still put your money to work for profit, even in the current correction in the market.
Click here to watch now.
Let’s get right to the biggest short-term Reality Gap facing the market. The News Media and Big Government, especially Federal officials, are happy to reassure us that the Covid-19 coronavirus epidemic will not become a major problem here in the States.
But after several missteps from the Centers for Disease Control and Prevention (CDC) and rapidly expanding outbreaks all over the world, traders are concerned. The global economy looks in danger of slowing down on a massive level if the containment efforts for this epidemic get much larger.
One key indicator for me is the minimal effect that the Fed’s emergency interest-rate cut this past Tuesday had. The short market pop after the 0.5% rate was erased in an hour. In fact, it may have made things worse, by giving the impression that the Fed was more concerned about U.S. economic health than traders had thought.
But the official number of coronavirus cases is far from Reality. With the restriction on testing and lack of working test protocols here in the U.S., we have almost certainly only seen a relatively small percentage of number of cases that actually exist here.
I believe we have yet to see the worst of the COVID-19 news – or the lowest stock market prices, either…