Emergency Update: CVD-19, Stocks, Housing

The first year of the new decade was looking so great. My how things have changed.

This video and below:
1. Corona Virus Disease 19

2. The Stock Market

3. The Housing Market

Note, this video was recorded on Thursday, March 12. The stock market has rebounded over 1,900 points since this recording. 

That said, concerns are high. Covid-19 was the catalyst for the stock market losing over 20% in just over one week. I will be reporting more about the build up next week. For many people whose wealth is primarily in the stock market, this is has been a rough week. For others who have transferred wealth out of the stock market, things are looking much better.

1. Covid-19: This is not the flu we are accustomed to. However, this is not as bad as we may think.

The stats are out:
- 80% of all deaths worldwide occurred in people over 60 years of age
- Younger groups experience a mortality rate of 0.2%
- The overall mortality rate is between 2.5-5% (5-10 times more deadly than the flu)
- Avoid large social gatherings
- Avoid touching your face
- Wash your hands regularly, especially after being in public
- If you are feeling sick or ill, stay home
- If you have a fever that lasts more than a day, seek medical attention

2. The Stock Market

What happened?
The market was due for a correction. In fact, the market had continued to set records while other asset classes had not been following the same pattern over the last two years. When the corona virus hit China and brought their economy to a halt, warning signs started springing up all over the place. Supply chains had been weakened. Workers were staying home. The travel industry has been brought to a halt as a result of this. As the virus spread, the market panicked and here were are. The bull run has come to an end. 

What's next?
This is a big question. The reality is that we don't know. The travel, hospitality and entertainment industries have been brought to a halt. Layoffs are imminent. People are staying home, so restaurants, theaters, malls and other establishments are seeing a natural decline in business. 

Do I think this is over? NO! 

Will this pass? YES!

3. The Housing Market
There has been a sudden effect to the housing market in that some escrows have cancelled this week due to concerns over Covid-19 and the stock market. There is always a delay in the housing market, as transactions to buy and sell homes typically last 1-2 months. Expect to see a softening of prices; specifically in the higher end. If layoffs continue though, expect prices to soften across the spectrum.

Are we heading for a recession? It would appear so. 

Is it going to be a huge one? It doesn't look that way. We honestly won't know until we get to the bottom.