Will Stock Market Continue to Drop
There is one question that will continue to haunt the minds of American investors during the coronavirus outbreak. Will the stock market continue to drop? We have already seen record breaking losses. But, will this trend continue going forward?
We are in a bear market for the first time in over 10 years. We're seeing stocks plummet at rates higher than the 1987 crash. The Dow Jones, the S&P 500 and the Nasdaq are falling off a cliff. However, what can we expect going forward?
Will the Stock Market Continue to Drop or Make Gains?
There are many factors influencing the recent bear market. First and foremost, the coronavirus fears are only rising. Next, uncertain oil prices are another major concern. And finally, the 2020 presidential election is right around the corner.
What does all this mean? For starters, we are much more likely to reach a recession than anything else. The COVID-19 outbreak is the key indicator. The infectious disease has spread to more than 100 countries and is wreaking havoc on many major industries. This includes the airlines, cruises, hotels, restaurants and more.
Due to this, the Dow was down over 4,000 points last week alone. The S&P 500 fell over 400 points and the Nasdaq was down 13%.
So, will the stock market continue to drop? A safe bet would be to say yes. There aren't any signs pointing in any other direction at the moment. Yet, you can still find a diamond in the rough. Sign up for our daily e-letter below to connect with our leading experts in the market.
The coronavirus is here to stay for some time. Many states are closing schools for the remainder of the year and beginning to implement shelter-in-place or stay-at-home orders. This will continue to do massive damage to many major industries.
Moreover COVID-19 testing is becoming more available. This is great news, but it will also lead to major rises in overall infection numbers. With more tests comes more results. Therefore, you can expect coronavirus cases to rise across the country over the next two weeks.
All of these factors make an impact on the stock market. Yes, some industries are set to benefit from the pandemic, while others will begin layoffs.
Coronavirus Stock Market Expectations
Forbes believes the stock market is set to drop another 20% to 40%. It may go even further as the coronavirus lingers on.
According to Katusa Research, the 2020 market crash is worse than any other crash in history through the first 30 days.
Here's how the 2020 #marketcrash compares to the worst stock market crashes in history.
It's not looking pretty. pic.twitter.com/C7Kftoo9Hx
— Katusa Research (@KatusaResearch) March 20, 2020
The chart above is a pretty good example of how long stocks may continue to drop. In fact, we are in this for the long haul. A true indicator will be the market numbers after 120 to 240 days.
Safe Investments During Coronavirus Outbreak
Though we are in a bear market, there are ways to manage your portfolio and minimize losses. You can also find a few hidden gems that will see gains during the outbreak. For example, this includes many biotech companies as they begin to ramp up testing for the coronavirus.
Are you looking for daily updates on the stock market volatility at the moment? If so, sign up for our free e-letter below. Investment U experts have years of experience in the market. Their daily reports will give you the latest stock tips and trends that you cannot find anywhere else.
Will the stock market continue to drop during the COVID-19 outbreak? It's almost certain. But, there are many steps you can take to protect your investments and manage your portfolio. Get ahead of the market crash today with our help at Investment U.
Corey Mann is the Content Manager of Investment U. He has more than 10 years of experience as a journalist and content creator. Since 2012, Corey's work has been featured in major publications such as The Virginian-Pilot, The Washington Post, CNN, MSNBC and more. When Corey isn't focusing on Investment U, he enjoys traveling with his wife, going to Yankees games and spending time with his family.
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