FLASH: President Trump: “Coronavirus Risk in America Remains ‘Very Low'”
Bond King, Jeffrey Gundlach blames Presidential hopeful Senator Bernie Sanders (I-VT) for the market recent volatility.
“If this stock market reversal is due exclusively to the virus, then why is United Healthcare down far more than SPX? Why is healthcare as a sector broadly not outperforming? Answer to these questions: the market is digesting a better than 50% chance of Bernie getting the nomination,” Mr. Gundlach wrote in an e-Mail Wednesday.
“Maybe this is the dark side of momentum investing, which is exactly what defines passive,” Mr. Gundlach wrote.
“The market goes down in a knee jerk way on the Bernie rise, but the market going down makes Bernie’s polls go up on his rejection of a market based economy. Which makes the market go down another leg. Rinse and repeat,” the DoubleLine Capital CEO and Wall Street “Bond King” wrote.
At Tuesday night’s debate, Sanders ridiculed President Trump as a “self-described great genius” who’s proclaimed that April is the “magical” time that the coronavirus will be wiped out.
US stocks turned lower in afternoon trading Wednesday in a new wave of selling sparked by fears of the coronavirus spreading in the United States.
The main US Wall Street indexes have declined in the past 5 sessions and the DJIA shed more than 1,900 pts in the last 2 days on fears of a pandemic.
The S&P 500 is of about 7% off its all-time highs marked last Wednesday.
This pullback is not being driven by fundamentals, it is driven by fear, at the end of the day, it is a buying opportunity for investors with a long-term focus.
Around the world, other global stocks and Crude Oil prices also resumed their sharp decline.
US and German bond yields resumed their fall while gold prices rose.
President Trump reassured Americans the risk of the virus in the United States is still “very low,” adding that he has named Vice President Mike Pence the point person for the task force.
“The No. 1 priority is the health and safety of the American people,” President Trump said. “Because of all that we have done, the risk to the American people remains very low.”
Wednesday, the major US stock market indexes finished at: DJIA -123.77 at 26957.51, NAS Comp +15.16 at 8980.81, S&P 500 -11.82 at 3116.39
Volume: Trade on the NYSE came in at 1.3-B/shares exchanged.
- NAS Comp +0.1% YTD
- S&P 500 -3.5% YTD
- DJIA -5.5% YTD
- Russell 2000 -6.9% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral to Bullish in here.
Looking ahead: Investors will receive Durable Goods Orders for January, the 2nd estimate for Q-4 GDP, Pending Home Sales for January, and the weekly Initial and Continuing Claims report Thursday