COVID-19 Uncertainty Is a Market Killer

Are things getting better or worse? In China it may be getting better. As for the rest of the world, when it comes to the status of the coronavirus, the reports show the disease is spreading and nations are ramping up their containment and response activities. 

Here in the United States we have had our first death (as of 3/1/20) and the number of reported infections is growing. 

Businesses everywhere are starting to hedge their bets on the future. If you are in the travel or convention business — this is the worst of times!

Uncertainty leads to hesitancy to act. In talking to a car salesman yesterday, he reports that his customers who have leases expiring in April are planning on "holding back" to see what happens. A Costco store on Sunday morning had a line wrapping partway around the store, starting at 9:15 a.m. when the store doesn't open until 10 a.m. Toilet paper and water were flying off the shelves.

Then look at this maritime shipping article and the three possibilities that are prognosticated in the story, Container shipping outlook butt-ugly in 2 out of 3 COVID19 scenarios.

I'm predicting a "more of a market slide" come tomorrow morning, Monday, March 2.