Big
news just hit as US Fed chair Jerome Powell announced a massive
one-percentage-point cut in the benchmark rate, moving it all the way
down to 0% to 0.25%.
This matches the lowest ever benchmark rate in US history, which was last seen during the Great Recession and its aftermath.
What’s more, the Fed is planning to buy $700 billion in government securities to provide a shot in the arm to the US economy.
President Donald Trump announced travel bans from Europe to the US
last Wednesday, which went into effect midnight Friday. They do not
apply to the UK.
Trump's address came after the World Health
Organization officially declared the coronavirus outbreak a pandemic.
The WHO had been reluctant to call the COVID-19 outbreak a pandemic in
an attempt to prevent panic, and suggested containment measures were
helping control the spread, but experts suggested the conditions were
met in late February as case numbers in Italy, South Korea and Iran
began to rapidly climb.
Italy
is the epicenter of the outbreak in Europe. Italian health officials
reported two single-day records on Sunday: 3,590 more cases and 368
deaths. Total cases in the country total more than 24,000, with deaths
at more than 1,800. That's the most outside China. Meanwhile, as cases
in Germany reached 5,000, the country announced that it will temporary
close its borders with France, Switzerland, Austria Luxembourg and
Denmark starting 8 a.m. local time on Monday.
Silicon
Valley companies have urged or, in some cases, mandated employees to
work from home and instituted measures to help hourly workers affected
by the policies. Tech giants have been hit by supply chain issues.
Goldman Sachs predicts us economy GDP will contract 5% in march and april.
Japan
and Thailand now have the highest odds of going into recession,
followed by South Korea, China, Australia, Singapore and Indonesia.
Manila enters a month long lockdown as President Duterte issued curfews in the city.
Scandinavian Airlines temporarily lays off 90% of workforce, affecting 10,000 jobs.
From schools to bars and even malls are shutting down across the world to prevent more spreading of the virus.
What does this all mean?
The world economy looks like it’s going into recession. But that’s when there’s huge opportunities...
If
you are someone who has no idea how to invest in the stock market and
trade shares of companies, or trade the financial markets at all... its
time you get educated.
Contact me to find out how you can get educated about this...
If you are an investor already but holding onto shares of companies that are already affected or going to be badly affected by these global events...
You might want to consider selling some of it to increase your cash reserves...
So
that you can take up better positions at cheaper prices in the next 3
to 6 months, until you can see signs of this virus situation getting
under control and the economy recovering.
Experienced
financial market traders are already profiting from this situation by
shorting shares or buying put options of companies that have weaker
balance sheets and more exposure to credit and cannot survive this major
downturn.
But
if you are not an experienced trader, you can still profit from this
once in a lifetime opportunity by being patient and waiting for a good
opportunity to buy shares of solid companies at discounts of 50% or
more... because what goes down historically will always come back up and
come back up higher.
I will be sharing with you some of my own stock picks soon...
The
most important thing is... you must recognize that in times of crisis,
massive fortunes can be created for those who are educated and prepared...
So
stay tuned to my weekly newsletter as I keep you updated on the latest
developments and opportunities for us to profit hugely from this global
crisis...
If you will like to get exclusive access to my personal stock picks and financial market trade opportunities, or know someone who might be interested in these updates, feel free to share my "Global Investors Weekly" newsletter to them with this link,
https://www.dennisbay.com/investors
