No. It’s not time to panic. In fact, it’s never time to panic.
The market is always confronting us with a constant flow of news and scary headlines. Sometimes the market reacts to them, sometimes it doesn’t. But, when it does, we have to adapt or have a plan in place. Planning can avoid panicking. Trust the process.
Bernie Sanders & Coronavirus Fears Spark Market Correction
Wall Street’s main indexes plunged on Thursday for the sixth straight session, with the S&P 500 confirming its fastest correction in history.
I believe that the rise in volatility is really a story about Bernie Sanders and the potential of a socialist presidency. Losses in Europe, and more risk-sensitive emerging market assets, have lagged the deep plunge in U.S. markets. If this is really about coronavirus today, we should see emerging markets down 4-5% … but that’s not the case.
This is about Bernie Sanders, this is about policy, and this is the correction we were looking for ahead of Super Tuesday. The failure of a more moderate candidate to emerge from the crowded Democratic field is a growing risk to markets.
The S&P 500 finished 12% below its Feb. 19 record close, marking its fastest correction ever in just six trading days. The previous record was nine days in early 2018, according to S&P Dow Jones Indices analyst Howard Silverblatt.
The Dow registered a record one-day points drop, which was also its fourth 1,000-point decline in history and the second this week. All three major U.S. indexes were also on track for their steepest weekly pullback since the global financial crisis.
Square (SQ) Keeps Rolling Along
Square apparently managed a neat trick at the end of last year: It changed its pricing without sacrificing volume. Whatever customer churn that may have resulted from the company’s pricing change appears to have been manageable. This is good news for the stock, which has already responded positively to management’s plan to reinvest in marketing and other efforts to recruit and retain sellers. At Square’s valuation, however, you would like to see even bigger future potential growth.
Qiagen (QGEN) Ships Coronavirus Test Kits to Four Chinese Hospitals
Qiagen NV (QGEN) shipped a new coronavirus test kit to four hospitals in China as part of a response to the deadly epidemic, the company said Wednesday. The QIAstat-Dx respiratory 2019-nCoV panel, which will be tested at the four Chinese hospitals after initial evaluation on clinical samples by the Bichat-Claude Bernard Hospital in Paris, rapidly differentiates novel coronavirus from 21 other pathogens tied to serious respiratory syndromes, the company said.
“The QIAstat-Dx solution can provide results in about one hour, with high sensitivity and specificity and minimal hands-on time for hospital or laboratory personnel,” Dr. Benoit Visseaux, associate professor of virology at Bichat- Claude Bernard Hospital, said in a statement. Qiagen (QGEN) said it intends to ship the QIAstat-Dx testing kits to public health institutions in other regions, including Europe, South-East Asia, and the Middle East.