Good afternoon,
- The U.S. and Global equity markets continue to experience significant downside volatility and we are watching the situation carefully.
- Today’s (03/09/2020) steep decline at the opening of trading is being linked to ongoing worries about the medical and economic impact of the Corona Virus, as well as the steep drop in oil prices over the weekend.
- The latter appears to be the result of a significant drop off in travel due to the virus, with airlines, cruise companies, conventions, and mass entertainment venues being very strongly affected.
- These worries are being counterbalanced to a small degree by continued strong economic data within the United States.
- However, as of now, fear and worry is winning the battle against the solid fundamentals of the economy.
- Today’s (03/09/2020) steep decline at the opening of trading is being linked to ongoing worries about the medical and economic impact of the Corona Virus, as well as the steep drop in oil prices over the weekend.
- Brian Wesbury, Chief Economist at First Trust Portfolios, has produced an excellent commentary today on the Corona Virus and the market volatility it seems to be spawning
- We agree with his prognosis and think you might find it helpful as well
- The commentary can be accessed by going to www.FTPortfolios.com and clicking on the “research and commentary” link at the top of the page.
We continue to be optimistic that the underlying economy is sound and that the markets will rebound once Corona virus fears eventually subside.
Ken, Dave, Todd