Be smart. That’s the one command Matt McCall has for investors after the stock market halted trading for a second time this week. As the coronavirus from China continues to elevate panic, he’s back with an emergency episode of “Moneyline” to calm his followers. What does he say? Be smart, wash your hands and use some common sense.
The S&P 500 saw another 7%-plus fall early Thursday morning, resulting in a 15-minute trading halt. That’s just the second such halt since the 2007-08 financial crisis. It’s certainly safe to say that things are looking a little chaotic on Wall Street these days. But what exactly is driving the most recent turbulence?
Well, many in the U.S. wanted a strong reaction from the federal government. President Donald Trump delivered just that, suspending some travel from Europe. The so-called travel ban currently only applies to foreign nationals, not U.S. citizens returning from abroad. But European officials began deriding the decision Thursday morning, calling it an overreaction.
If there’s one thing investors hate, it’s uncertainty. On top of the government-driven uncertainty, the virus itself is hard to pin down. How many total cases will pop up? How many people will die? Worst-case scenarios are dominating headlines and investors’ imaginations are running wild.
Perhaps inspiring even more fear is how the outbreak is affecting day-to-day life. Sports fans spent Thursday watching major sports leagues suspend seasons left and right.
Local business owners are predicting the economic impacts of a few weeks — or months — without profits. And McCall has skin in the game too. He owns a local Pilates studio — something a quarantine would definitely impact.
Oh, and in case investors needed something else to panic about, celebrities are getting sick. Tom Hanks and his wife Rita Wilson tested positive for the coronavirus while in Australia. But Chet Hanks, their son, has something important to say. His parents “aren’t tripping” about the coronavirus. Investors should’t be, either.
Once again, McCall is not trying to downplay the tragic nature of any individual death. He’s just trying to put the numbers in context. According to the Centers for Disease Control and Prevention, there were over 30,000 deaths in the U.S. from the 2018-19 flu season. That’s just the regular flu.
And do you remember the swine flu, signified as the H1N1 virus? As much as 21% of the U.S. population got sick with the swine flu. Chances are, that’s not something you think about every day.
There are still chances for smart investors to profit from this bear-market environment. There’s that old saying, “buy when there’s blood in the streets.” It’s safe to say that there’s blood in the streets now, so get buying.
Are you wondering how you can stomach the volatility and start buying today? Here’s something to think about: What about the coronavirus is going to stop innovation? Nothing is going to get rid of 5G, electric vehicles and the internet of things. And if anything, the coronavirus has just shown investors how truly powerful biotech will be in 2020 and beyond.
If you need a good starting point, tune in to “Moneyline” with Matt McCall for more on market volatility and two great stocks to buy now.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.