Market Mavens – Stock Research Made Simple

Coronavirus Rocks Wall Street

he Market’s Long Nap Comes to an End While This Company Raises Dividends For a 37th Straight Time The stock market got rocked this week as fears of Coronavirus finally spooked traders. On Monday, the S&P 500 had its worst day in more than two years, and the heavy selling continued into Tuesday. What’s interesting is that until now, Wall Street had been remarkably calm. In fact, the S&P 500 went a good part of the fourth quarter with only a few days of market drops more than 0.4%. That’s not much at all. It seems that investors got lulled to sleep by the market’s calm upward rally. What’s really happened is that we’ve gone from very low volatility to somewhat moderate volatility. This kind of market action really isn’t that unusual. Since 1950 there’s been, on average, three market drops of 5% or more. Most of the time, these pullbacks don’t amount to much. Sometimes they do. The market doesn’t seem so concerned with the virus itself. Rather, it’s the knock-on effects of the virus. Global travel and trade routes are being upended. South Korea just announced that consumer confidence had its biggest drop-off in five years. Travel stocks have

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