Good morning. The coronavirus fears have led to one of the fastest market declines in history. In the span of one week, the market has slid nearly 12 percent, hitting correction territory.
On a technical basis, things look even worse. Shares have gone from trading over their 50-day moving average to testing the 200-day moving average. We expect the market decline to slow after the recent beating, and start to trade in a range until the fears subside. But if the market closes materially lower from that average, stocks could be in for a painful time.
February 28, 2017
In 1939, a young trader named John Templeton bought a bunch of stocks trading around $1 a share.
Four years later, he didn’t just become a millionaire…
He became a billionaire, even though some of the companies barely budged.
And he spent the rest of his life living in the sunny, carefree Bahamas.