Are markets serious about Coronavirus?
In this week’s video insight Roger provides an update on the coronavirus. With the death toll now more than 2,700 and more than 80,000 global cases. Additionally, the Mayor of San Francisco has declared a state of emergency, hotels are in lockdown in Italy and Austria, and the virus is spreading in Iran, Croatia and Switzerland. Other than the last two days of selling, markets have been relatively sanguine about the coronavirus with the S&P500 hitting record highs just last week. Why?
If you would like to read further thoughts from the team on Coronavirus, please review:
- What might be the economic impact of the Coronavirus
- How the coronavirus is infecting China’s activity
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
jeff nelson
:
Hi Roger
I seems like there is a floor in the market at the moment.
Is the reserve bank buying the majors, i thought the market would be in buying range today after last night with the DOW falling so much.
Thanks would love to here your insight ?
Roger Montgomery
:
Not sure that is the case Jeff. Don’t think so.
Paul Audcent
:
Yes, many thanks Roger, well I guess the market will do its usual practice of ups and downs and sadly those who cannot hold on will ultimately lose out. And those in the know will buy and gain. I’m 78 and sadly its been going on for yonks. However the clarity you make of this latest mess is greatly appreciated and I also hold a small percentage in cash, but my daughter is thinking of buying a house and I fear I will loose it and some shares as well, but not my investment in your great little company.
Roger Montgomery
:
Yes Paul, ‘Old heads’ tend to prevail. I’ve met so many professionals who started investing after the FFC and have known only north easterly trends. This could be their first lesson.
Arthur
:
Your the man
John
:
Thanks Roger, your update is measured and thoughtful.