Stock Markets Suffer Their Worst Week Since The Great Crash Of 2007-2008

I have been consistently warning about a massive stock market crash coming, and while nobody could have seen the coronavirus coming, I noted the deadly effects it would have on trade and which would naturally affect the markets. I noted that the most likely winners would be the plastics industry, biomedical industry, and precious metals (after panic seriously happens, especially for the latter).

It is unfortunate but not a surprise that there was a major stock market decline today, making it the worst crash since that of 2007-2008.

Global stocks slumped again Friday to mark the largest weekly drop since the 2008 global financial crisis over fears the coronavirus could wreak havoc on the world economy.

Crude oil prices tumbled as well and analysts said that central banks, especially the US Federal Reserve, might have to shift into crisis-resolution mode with urgent interest rate cuts.

But James Bullard, head of the Saint Louis Fed, warned that emergency rate cuts were “not the baseline at this time” for the central bank’s policymakers.

And “beyond helping to alleviate the current stock market collapse, there is little any central bank could do to alleviate the potential repercussions of a global pandemic,” noted Joshua Mahony, senior market analyst at IG. (source)

As I said before, and I will say again, there is not going to be a lot of economic growth save for those areas, as they are either directly tied to materials needed to combat the virus, and in the case of the latter, as a safe haven for investments as they continue to decline.

This is something that will need to be watched very closely, as it could have serious long-term political effects, even for the Republicans.

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