The Fed couldn’t do it. Impeachment couldn’t do it. The tariff wars couldn’t do it. Even earnings couldn’t do it. What did it? Fears of a global pandemic over the Chinese originated coronavirus and its anticipated impact on growth prospects in China and around the world. And what is the it? A long-awaited market correction. But just like past fears over various viruses coming out of the Far East- SARs, Bird Flu, etc., we speculate this will burn out quickly. Moreover, the initial earnings reports have been surprisingly strong, and while outlooks are a bit muted; managements don’t want to play the roles of heroes given uncertainty, we expect a short correction.
Take advantage of the opportunity!