Plunge in Dow, Interest Rates Continue; Airline Stocks Hit
[Note to Readers: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway (“Berkshire”), or any other entity referenced. Edina Realty is a subsidiary of Berkshire. If you want an upbeat take on the market . . . stop reading here.]
I don’t know about you, but I need to at least temporarily get off the roller coaster called “the stock market.”
It plunged yesterday, made a feeble rally this morning, and is now plunging again.
My advice: take the afternoon off (if you can), and check back at the end of the day.**
Or next week.
Or next Fall (make that, “Winter 2021,” post-election).
If you’re watching hourly (or even daily) gyrations in the stock market . . . you’re dangerously close to the tempest.
Day #1 vs. Day #2
The obvious cause of all the carnage?
The rapidly spreading coronavirus.
Put it this way: yesterday, Delta Airlines plunged because it has international travel exposure.
Today, Southwest Airlines plunged because it has domestic travel exposure.
What changed virtually overnight is the now-dashed perception (hope?) that the virus’ outbreak would be limited to Asia.
As the new reality takes hold, Wall Street number crunchers are furiously calculating: 1) the potential hit to domestic — as in, “U.S.” — air travel the next few quarters, and 2) the resulting damage to airline stocks, and the broader economy.
But, clearly the current mood is to sell first, and ask questions later.
I warned you . . .
See also, ““Free Mortgages! Git Your Free Mortgage!!”.”
**The stock market closes at 3 p.m CST.