It's another 'The World is Ending' moment. We are in the panic first, think later phase of the latest market correction. Those bearish market pundits who were telling you to sell every step of the way since 2010 are pinning their hopes on this Coronavirus to finally validate their 10 years of negative market perspective.
One noted Uber bear , who with the $SPY at $290, in September called it the best time ever to short the market... yes ever.. only to watch it rally to almost $340 months later.. is still wrong...
Ironic.. no? That the market has suffered a nasty 'crash' with several DOW 1k DOWN days recently and his short call from September is still in the red by some 3-5%! Really?
Anyone notice how those market pundits are now Virus experts? After scaring everyone for years out of some of the best market gains in history, they've now determined that this Virus is worse than the Spanish Flu in 1918. They are using this Virus to justify their longstanding belief that the market is over valued.
And the bears always have a well spoken narrative. They draw carefully constructed red lines with large red arrows. Always cautioning they may be wrong... possibly.. that the market will head higher... and then follow that very quickly with pages and pages of why this market is destined to drop swiftly into the abyss.
This VIRUS is no joke. It is killing people. But to say its going to wipe out 20% of the World Population is just fear mongering. Fear sells. No doubt about it. And fear is worse for life than it is for money. I'd say people are more scared of death than losing money. So leave it to these Fear mongering 'financial twits' to switch from their failed market crash fear mongering to fear mongering about a Virus wiping out 20 million people +++.
and now I'm off the soap box. That's it.
So where are we now?
I think on the cusp of a sharp recovery for the market. Record highs coming again? Just think of all the sharebuyback's getting more shares for the buyback buck. Yep. And when this Virus settles down on the back burner, and investors stop listening to the fear mongerers, there will be less shares to go around for the next run higher.
Oh and central banks cutting rates? More QE? They are not out of bullets by a long shot. And with this Virus keeping inflation low, its lower for even longer as far as Interest Rate policy is concerned.
So while this Virus Fear is all around us, it too will pass. Just like every other fear induced sell off we've seen.