Stock Market Jitters

The Coronavirus is giving a lot of stock market professionals the jitters.   

No wonder.  An economic slowdown in China, spreading with the virus, spells trouble for highly-leveraged sectors of its economy, trouble that can snowball quickly to other sectors.  

And to other countries.

It’s wise to be defensive now.  Simply ask yourself how attractive is the thought of being quarantined in some foreign port on a cruise ship right now.  A slowdown in travel, hospitality, and trade will have wide consequences for stocks.

Consider supply chains as well.  Companies that depend on parts manufactured in China are drawing down thin inventories as the quarantines tighten.  The quarantine is already crippling some Korean automobile manufacturing dependent of Chinese suppliers.

You get the idea.  As the cliché goes, it really is a global economy.  That will become even more clear if the virus isn’t contained and dominoes start falling.

We think most people work way too hard for their money to swallow whole the empty assurances that this outbreak will be contained.  No matter what the WHO and the CDC and the Chinese bureaucrats say, the truth is they don’t really know.  Nobody really knows.

One thing we do know from the monetary philosophy that reigns at central banks:  they will try to offset any slowdown with additional liquidity.   Central bankers questioned about the risks of the coronavirus have made that clear.

It is no time to be complacent.  Protect your profits with gold.

As the world has discovered many times, gold is the best place to go in a crisis.  

Learn more and protect yourself from a jittery stock market.  Call Republic Monetary Exchange and speak with one of our gold and silver professionals.