Fears surrounding the impact of coronavirus and the potential for it to turn into a full global pandemic impacted markets last week, with stocks falling and bonds and gold rising. The next few weeks will be critical to determining if the impact of the virus is temporary or more long lasting. Two signals that should not be discounted in the markets are the new all-time lows in the 30-year Treasury yield and the sharp rise in the price of gold.
The cancellation of more global events due to the virus and additional countries reporting cases will weigh heavily on markets. Stock markets around the globe are expected to open significantly lower today. I anticipate the pressure on markets will remain elevated for the next few weeks.
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