Here is some information to all investors regarding the state of the market and the issues within the economy from the latest press releases of whats been going on around the world.
If you have been following the news (and most of you likely have been over the last few weeks), there is a certain fear between the correlation of the pandemic of Coronavirus and the market that people are speculating on.
There is a saying from Warren Buffet that we've read about before saying: "Be fearful when others are greedy, and greedy when others are fearful." He spoke these words back in 1986 during a shareholder meeting. This happened to have been said a year before the now coined "Black Monday" stock market crash of 1987, where the markets plummeted over 22% in just one day.
We've now had many regulations in place to reduce the risk of another one of those days happening again in the market. But this past Monday, March 9th, 2020, the day that we were filming this, it was calculated that the markets dropped 18% in just three weeks. We had even seen that today these regulations were put in place when the market hit -7%.
Many people these days are blaming the state of the economy on Coronavirus, but thats just not the case. We look at Tesla especially, because there was a 30% dip from its highest point back in February to today and that isn't just from Coronavirus. These market fluctuations are stemming from overvaluations on stocks and it just has to happen. Now did the Coronavirus happen to kick start everything, possibly, but it's not the whole issue.