Investment wizard Warren Buffett described Monday’s market plunge as a “1-2 Punch” of coronavirus and falling Crude Oil prices that it took him all his life to experience.
“If you stick around long enough, you will see everything in markets,” Mr Buffett said Thursday.
“And it may have taken me to 89 yrs of age to throw this one into the experience, but the markets, if you have to be open second by second, they react to news in a big time way,” he said.
Deep diving US stocks Thursday confirmed Wall Street is in a Bear market after new travel restrictions to curb the coronavirus rattled world markets.
President Trump’s Europe travel ban announced late Wednesday sent all 3 major US stock indexes due South, closing the book on the longest-running Bull market on record.
The benchmark S&P 500 and the NAS have lost about 24% of their value since reaching record closing highs 16 sessions ago, as nations around the world struggle with how to contain the coronavirus and its economic effects, Reuters explained.
A Bear market is confirmed when an index sinks 20% or more below its most recent closing high.
Mr. Buffett said market plunges in Ys 1987 and 2008 were more frightening.
“It was not October 1987, but it was an imitation… and the financial crisis was much more scary, by far, than anything that happened Monday,” he said.
Thursday, President Trump said he expects markets to recover from the mounting losses caused by the coronavirus outbreak.
“It is going to all bounce back and it’s going to bounce back very big,” President Trump at the White House.