Gold was close to $1,700 last week before all these chicken little started screaming the market was going to crash due to coronavirus.
Now I'm saying this is real news because there's so much fake news out there, but have you seen videos out of China recently? Nothing is going on in places like Shanghai. Cities look and feel empty. It's very surreal, especially since everything here still seems normal.
I think by now we all know China has enforced extreme quarantine to suppress the spread of the virus within its own country. But what happens when they start reopening their factories next week? What if these extreme measures were for nothing and their spread starts all over again? And in the best case that they've effectively eradicated it, are they going to lock down their borders to prevent reinfection and just be a mass exporter while consumers are spending less in other countries to deal with their own outbreaks? This outbreak is good reason to be cautious right now.
If the entire world could have just shut down for like a month, the economic impact would have been minor compared to having everyone all over the place in terms of dealing with this like we are right now. Everyone is completely non-chalant until it's a problem. There's no pro-activity because that costs more up front. And because we're all reacting at different times, everyone is out of sync and it's the most costly outcome in the end.
Edit: And yes it will bounce back. But it's still feels pretty early in all of this. Not until we see how China "resumes" can we get some confidence back imo. And that's only if it isn't a big problem in other parts of the world, which it seems to be already...
only made a few thousand
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