Instead, it’s “up, up, and away!” Something doesn’t seem right. How is it that stock markets have not cratered, given the horrific 2019-nCoV coronavirus raging throughout China?
Have you any idea how much product and widgets are made in China? Think about all the sub-components of a given product that are likely made in China. The US is not a manufacturing nation. Hasn’t been for decades since “handing it over” to China.
So the question is, how and why are stock markets not falling right now? They did react to the down side when mainstream news of coronavirus in China first became apparent here in the US. But it has rebounded onward and upward — as though “no big deal”.
It’s illogical. There are clear disruptions in manufacturing over in China right now. Industries closing due to pandemic. It’s a very big deal!
The supply chain is such that it will take “x” amount of time before it’s felt here. It takes about 30 – 40 days for China-to-US ocean freight (shipping containers) for example.
As the coronavirus pandemic continues to go exponential, the effects are going to become obvious here in the US when shortages begin. It’s logical.
So how and why are the stock markets not bothered by this? Strange, yes?
As I type this, the stock market is up 300! What the…? We’re looking at 29,100 and rising. It all just seems nuts (for multiple reasons)… I wish I had the guts to have jumped in way back when, but it’s so crazy that I just could not bring myself to do it. But I digress.
I welcome your theories why the markets are currently unaffected by what’s going on in China, and the potential for global pandemic…