If 2019 was (and it sure was) the year for putting money into U.S. stocks, will 2020 be the year for putting money to work outside the U.S. and especially in emerging market stocks?The answer from a large–and it seems increasing–number of Wall Street strategists is “Yes.” Should you follow this year’s advice?
I think today is just a pause in the China-coronavirus selling; I’m selling China Southern Airlines out of my 50 Stocks Portfolio today on the bounce.
Airline stocks have been among the hardest hit equities in the coronavirus selling. As the biggest airline in China and indeed in all of Asia China Southern Airlines (ZNH) has sold off especially quickly. The New York traded ADRs sold at $35.41 on January 14 and were at $28.00 at 3:20 p.m. New York time today, January 28. That’s drop of 35% in two weeks (even though the ADRs are up 1.89% today.) In my thinking we’ve still got a way to go before markets can breathe a true sigh of relief and put coronavirus fears behind them. And move onto worrying about other things like economic growth rates in China, rising debt levels, and earnings growth for U.S. stocks in the first and second quarters of 2020. Normally I wouldn’t sell a long-term pick out of my 50 Stocks Portfolio on a short-term event like this. But…
U.S. stocks are up today with the Standard & Poor’s 500 climbing 1.19% as of noon New York time and the Dow Jones Industrial Average ahead 0.90%. The NASDAQ was higher by 1.49% but the small cap Russell 2000 slipped 0.20%. The iShares MSCI Emerging Markets ETF (EEM) gained 0.91%. (The Shanghai Stock Exchange is closed for the New Year holiday and will reopen on Friday, January 31. The Hong Kong Stock Exchange is closed today and will reopen tomorrow, Wednesday, January 29.) Many of the stocks that got pounded yesterday on coronavirus fears rallied toda
Yesterday when the market was a sea of red, shares of AbbVie (ABBV) were a small beacon of green. Today when, as of 3:40 p.m. most of the market is green, AbbVie is a small spark of red. What’s up?
The news from China and about the coronavirus continues to get worse. The death toll has climbed to 82, and at least 2,800 cases have been reported in China. And it doesn’t look like the outbreak has been contained with health experts questioning the efficacy of any quarantine and the mayor of Wuhan, the likely source of the virus, saying that 5 million people have already left his city for the Lunar New Year’s holiday.
China has clamped travel restrictions on 40 million people on the eve of the Lunar New Year’s holiday in an effort to contain an outbreak of a respiratory virus that has killed at least 39 people in the country. France has reported the first two cases in Europe. U.S. health authorities are monitoring more than 60 people for potential infection and have confirmed a third case of the infection. The worst news, however, is that some infected patients aren’t showing a fever. Health organizations around the world have been using indications of fever to screen for the coronavirus. An inability to use fever to screen for the virus would vastly complicate efforts to contain its spread.
France and the United States have struck what the Trump administration and the French government are billing as a global framework for digital taxation that avoids a transatlantic trade war (according to French Finance Minister Bruno Le Maire.) But like the Phase 1 deal recently signed by the United States and China, this agreement actually settles nothing.