After a session in which caution dominated and stock indexes recorded minor losses. However, when the news of the first case of Coronavirus that had already caused victims in China and had been detected in the USA from the Centers for Disease Control and Prevention, today it has already changed its tone and Wall Street continues to rise, due to the perception that the theme of the virus may not be as serious as it was supposed yesterday, not least because China has taken significant actions to try to prevent the spread of the epidemic when just three days before the Chinese New Year, the main festive period in the second largest economy in the world and which could generate 3 billion trips within China.
But in reality, although the issue of international health is an important topic for investors, especially in cases where there are still great lack of knowledge about it, namely how the virus spreads, the truth is that the market trend continues to be clearly upward and only a very concrete and serious shock can derail the Bulls ‘trajectory, because at the end of the day few forces are stronger than the central banks’ stimulus program and its gigantic balance sheets, namely the FED, which curiously it became what it tried to avoid a decade ago in the financial system, an “too big to fail” institution.
Photo by Random Sky.
