The entire world is in a panic about the coronavirus.
If you are watching the mainstream media, you probably think the world is about to end.
It is not.
I cannot claim to be an expert on infectious diseases, nor am I an expert on viruses or contagion.
What I am an expert on, is the markets, particularly the madness of investment crowds.
And I believe… and this is just me talking… the coronavirus is being COMPLETELY overblown.
Case in point…
Coronavirus has supposedly infected 75,000 people and killed close to 3,000.
The flu infects between 29 MILLION and 41 MILLION people in the U.S. Every. Single. Year.
This year alone, the flu affected 29 MILLION to 41 MILLION people, leading to 280,000 -500,000 HOSPITALIZATIONS and 16,000-41,000 DEATHS.
Again, the flu has killed somewhere between 16,000 and 41,000 people in the U.S. since October 1st 2019.
Did the media once refer to this as a pandemic? Did the media say it would trigger a recession? Did the media go bananas saying flu would infect us all and wipe out humanity?
They didn’t even mention it except to suggest getting a flu shot.
But what about China and the supply chain issues caused by the coronavirus?
I ask… if the coronavirus is truly triggering an Armageddon type event in China, can someone explain to me why the Chinese stock market has already recovered ALL of its coronavirus losses?
By the way, as the above chart shows, the coronavirus collapse of the last month in China is identical in scope to the collapse China experienced in April 2019 when the trade deal broke down between the U.S. and China.
Again, negotiations between the U.S. and China broke down and stocks collapsed as much as this supposed pandemic that is allegedly imploding China’s economy.
Also, and this is really odd… China’ stock market is not only up 10% this month, but is dramatically outperforming the US since for the month!
Would China be rallying like this if coronavirus was shutting down its entire economy?
Look, if you want to panic and run around like a chicken with your head cut off, go right ahead.
Personally, I am BULLISH. Insanely bullish about the markets. If things even marginally improve, we are going to get a “rip your face off” V-shaped recovery in the markets.
I plan on making a LOT of money from that.
You’re welcome to join me…
Chief Market Strategist
Phoenix Capital Research