New York City is Now Epicenter of Coronavirus COVID-19 Outbreak in the USA

Coronavirus Outbreak and Volcanic Eruptions Putting Some Asian Economies on the Brink of Collapse

Global Equities markets fell sharply on Friday as new coronavirus cases surfaced in Iran, Italy, and South Korea

Deserted streets and shopping malls caused by the coronavirus outbreak, begin to put a heavy toll, on not only the Chinese economy, but the Global economy, while massive volcanic eruptions, accompanied by strong earthquake-like shocks, rock the Philippine.

Global Equities markets fell sharply on Friday as new coronavirus cases surfaced in Iran, Italy, and South Korea. The coronavirus, dubbed COVID-19 killed 210 people in Iran, the most in any country outside of China.  Iran closed schools and cultural centers in an effort to prevent spread, of the virus. Italy reported 52 deaths and over 2000 confirmed coronavirus cases and South Korea reported 22 as the number of infected persons in the country surged to 4,335 on Monday. Eighteen more people died in Italy since Sunday; an 88-year old Italian man who had pre-existing health conditions, have died like others who had pre-existing health conditions, after testing positive for the COVID-19 virus. In the U.S. Washington State Health Officials confirmed 6 deaths from COVID-19.  

A 20-year old asymptomatic Chinese woman travelled 675 kilometers (400 miles) and infected five family members. The coronavirus’s unpredictability was put on display when Chinese scientist and doctors discovered that a 20-year old Chinese woman from Wuhan, the epicenter of the coronavirus outbreak, travelled quite a distance to visit family members in Anyang, a northern province, where she unknowingly infected five family members. It is becoming clear that younger people in their twenties without pre-existing medical conditions may very well be less susceptible to the disease. However, further research will be needed to confirm this hypothesis. The spread of the virus by asymptomatic people gives scientist another pill to swallow in fully understanding the true nature of the coronavirus, COVID-19.

In the Philippine, the Mount Taal volcano erupted Sunday on the Philippine island of Luzon, spewing volcanic ash as high as 9 miles in the air, covering shattered homes, forcing large-scale evacuations of surrounding villages, and crippling an economy just beginning to emerge. Philippine tourism flourishes at this time of year; however, with the advent of the Taal Volcanic Eruption, tourism activities will subsequently decrease followed by revenue. Like my country of Jamaica, the Philippine’s economy relies heavily on tourism, so any disaster compromising tourism will also compromise the economy. There has been a prevailing fear among citizens who thinks that the country’s heavy economic dependence on travel and tourism could prove costly, especially if a natural disaster occurs. Well, this could be it. Let’s hope that this isn’t the case.

The volcanic eruption forced all citizens living in the surrounding area to evacuate, leaving all belongings behind. Some of these belongings happened to be live-stocks, fisheries, farms, and other subsistence-producing resources.  Taal volcanic ash covered everything in sight, from horses to tree tops. The local government set up camps to accommodate evacuees. But despite the wide-spread destruction of villages, people still defied authorities and returned home, only to see, the destruction of their properties.

According to the World Travel & Tourism Council (WTTC), the Philippine travel and tourism industry contributed 1.43 trillion pesos or 10.6% to Philippine GDP. This figure represents the compound effects of tourism and travel on investments, suppliers of goods and services, and the positive impact on income. This contribution of tourism and travel is expected to grow at an annual rate of 5.4% in coming years, leading to a projected GDP value of 2.6 Trillion pesos by 2026. Therefore, with a natural disaster as devastating as the Taal volcano, Philippine GDP projection could greatly be less than previous estimates, not good for a country on the rise, economically.  

As an emerging market, the Philippine ranks as the sixth richest country in Southeast Asia by GDP per capita among countries such as Singapore, Brunei, Malaysia, Thailand, and Indonesia. The Philippine economy ranks 36th in the world by nominal GDP, according to a 2019 International Monetary Fund statistical estimate, and ranks as the 13th largest economy in Asia. With this said, the Philippine economy has clawed its way up the ranks and has shown signs of growth, but with such a devastating volcanic eruption, the country’s economy may take a step back before resuming its upward growth. Time will tell, but we all wish the Philippine a swift and speedy recovery from this disaster.

Anyone willing to donate can do so through the Philippine Red Cross by visiting the link on the screen or click on the Red Cross link below this video,; your donation will be greatly appreciated. Thanks in advance.

The coronavirus has skewed sentiment in financial markets as new coronavirus cases surged in other countries. Investors’ pull the plug on their equity investments sending the Dow Jones industrial average to a 700-point drop on Monday as uncertainty brought on by the coronavirus spreads.

As a result of the rapidly spreading coronavirus, some publicly traded companies have begun to feel the squeeze. Apple informed investors last week that its worldwide iPhone supply will be temporarily constrained. In layman terms, this means that iPhone sales will be less than expected; therefore, revenue will be down in the short-term. So, expects Apple’s stock to plummet and expect the stock market as a whole to temporarily drop. For example, with less manufactured product demand, less products will be produced; Therefore, the most recent Nonfarm Productivity Report should reflect this. Drum roll, let’s see what the Nonfarm Productivity report for the fourth quarter says.

The Nonfarm Productivity Report released on Thursday, February 6, 2020 at 8:30 AM, New York Time, missed market expectation of 1.6%, posting a reading of 1.4%, coming in much higher than the previous mark of -0.2%.

The Nonfarm Productivity Report measures annualized changes in labor efficiency when producing goods and services, excluding the farming industry.

A higher than expected reading should be perceived as positive for the U.S. economy and bullish for the USD, while a lower than expected reading should be perceived as negative for the U.S. economy and bearish for the USD.

We can see that the Nonfarm Productivity Report accurately reflects the decrease in productivity due to the coronavirus outbreak. The fact that the current reading only missed the forecasted reading by 0.2% suggest that the reduction in production is just temporary. Talk about getting high intrinsic value financial market assets at low prices, now is the time. This is where having a professional and ethical Financial Advisor comes in handy. If you would like to truly take advantage of opportunities in the stock market, a trusted Financial Advisor or Investment advisor is all you need. Click the link below to review our resource of trusted investment advisors. The Bureau of Labor Statistics Released the Nonfarm Productivity Report on Thursday, February 6, 2020 at 08:30 AM, New York Time.

Analyzing Macroeconomic indicators help investors see what direction the market will eventually head in. For this reason, it is imperative that we traders wait until a definite signal is given before we make a trade or not make a trade. If the trader is already in the trade from a few weeks prior, then the rule is to stay put and collect your profits by allowing your fish traps to fill up with fish before the trap before hauling it away. There is one very important economic indicator that is spot-on in telling you what direction your forex currency pair will go in. Heck, it even tells you what the stock market is going to do temporarily.

I learnt about the power of this economic indicator while taking my investment advisor course, which I paid a lot of money for of course. So, I won’t be giving away this information for free.  That wouldn’t be fair because I paid money for the course, so anyone who gets this information has to return the favor. In any case, economic indicators are very powerful tools in helping investors create investment strategies. I will leave it at that.

By the way, U.S. equity markets fell again for the second day in a row. Bond market yield also joined the dropped party. On Monday February 24, the U.S. Equity markets fell hard, as a result of escalating concerns about the coronavirus and the negative impact the outbreak will have on the global economy. The Dow Jones Industrial Average fell 1031.61 points or 3.56%, while the S&P 500 fell 111.86 or 3.35% and the NASDAQ 100 shed 355.31 points or 3.71%; the Russell 2000 lost 50.51 points or 3.01%.

The stock market has been galloping up the charts like a wild horse and sooner or later, it was going to come crashing down. I have mentioned this in past videos. I have even mentioned that investors were acting a little irrational, pushing the stock market up to historic highs on a weekly basis. This kind of irrational exuberance caused the market to be overpriced, and sooner or later investors would realize that they have pushed the market to overpriced levels at which time they will begin to pull the market back.

Well, to no one’s surprise, equity investors have finally realized their mistakes and have begun readjusting the market to what they believe is the market’s true price. Smart money knows that this readjustment will also be inaccurate, which will need further inaccurate readjustments. All these phases of readjustments are steadily putting money in smart investors’ pockets. This is how the game is played people. Another important note is that smart money won’t just readjust the equities market out of the blue, they will use an excuse to do so, and the coronavirus outbreak happens to be that excuse. At some point, investors were going to start taking profits, so they were just waiting on the right time to do so, and what better time to take profit than to take it during a global pandemic.

The recent stock market pullback got some people panicking. They seemed to be blind to the fact that the equities market and the USD had been riding in overpriced territory for a long time. The stock market has been hitting record highs almost every week prior to the recent pullback. People who never spoke about the stock market all of a sudden are now talking about buying stocks. This is when smart money takes action. What action? Well, send me a text message and I will tell you. Since the Brexit vote, the USD has been on a tear, while the EUR had been oversold and left for dead at levels haven’t been seen since 2017.  Sooner or later things were going to change. What is the EUR doing now? Just what I expected. If you take a look at the recent move of the EUR, you will see what I mean. Movements of the Euro can be seen on the Forex page.

Why are people panicking about the stock market? People should not be panicking; instead, they should be relieved that finally the equities market has begun to act normally by pulling back for a change. A steady upward movement without any pullback is not normal. Businesses aren’t profitable all the time, so why should the stock market be positive all the time; sometimes businesses experience slow periods and sometimes profitable periods, so why should the stock market be any different.

We should’ve expected some kind of pullback like this because although the stock market was skyrocketing, the federal reserve was steadily adding overnight repo loans to the financial system, keeping it lubricated. So, if the financial system was so strong, why would the Federal Reserve still continue adding lubrication? That is a question that my 18-month-old could answer.

Talking about the strength of the economy, has anyone noticed the number of CEOs departing from their post in 2020? Well, a friend of mine brought it to my attention, and I took a long look at it and saw for myself the long list of CEOs departing their post at record pace. The list begins with Jeff Weiner of Linkedin, who is stepping down in June after running the company for 11 years; Ajay Banga of Mastercard who is set to step down in early 2021 after more than a decade of running the company; John Legere of

T-Mobile is scheduled to step down in May of 2020; the company’s share price rose from $12 to $80 per share during a 7-year run. This is what they mean, when they say, leave while on top; Bob Iger of Disney stepped away from his duties as CEO on February 25 after a 12-year stint with the company. Adam Bierman, CEO and co-founder of the cannabis company Medmen, stepped down February 1st, after a steep decline in the company’s share price over the past year; the company laid off roughly 40% of its work force at the end of 2019. Terry Booth, CEO of Aurora Cannabis, hinted that he was stepping down and retiring on Frebruary 6th. Several struggling Canadian Cannabis companies have recently shifted leadership roles. Are we witnessing a ganja bubble?

Did these CEOs saw something in the economy that caused them to start such mass exodus? Or did they see the opportunity to leave on top as a result of the economy and stock market doing so well? We will never know for sure. If the stock market crashes by losing 50% of its current value, in a few months, then we would say that those CEOs saw this coming, and this was the reason why they packed their bags and ran away from an impending economic bust. This is what comes after a sustained economic boom that we have been experiencing ever since the 2008 stock market crash.

The majority of U.S. economic indicators didn’t show anything different from what we have been talking about in regards to the economy. The year-over-year Core CPI beats forecasts of 2.2%, posting a reading of 2.3%, matching a previous reading of 2.3%, nothing surprising there. The CPI measures changes in the price of goods in respect to the consumer. It is a key economic indicator in measuring changes in purchasing trends and inflation. So, current inflation sits at 2.3%. Is this good or bad? The Federal Reserve likes to have inflation at around 2.0%, but 2.3% is not bad if it accompanies economic growth, which happens to be the case of the U.S. economy in the past 11 years. A higher than expected CPI reading should be perceived as positive for the U.S. economy and bullish for the U.S. dollar, while a lower than expected reading should be perceived as negative for the U.S. economy and bearish for the USD.

Based on the current inflation readings, we can see that the U.S. economy continues to exhibit strength despite the recent minor setback caused by the coronavirus outbreak and as we have said before, smart investors are just using the coronavirus scare as an excuse to take profits, thereby forcing the stock market and the USD to temporarily show weakness. This is similar to a blip in the radar, nothing to worry about in the long run, no need to panic. This is where having a professional investment advisor comes in handy.

A person’s time horizon is the key factor that should be taken into account when deciding when to invest in the stock market and when not to invest. If you know you are going to retire in a year from now, you shouldn’t be exposing your 401k to risky high-returns mutual funds, you should only be doing so if you are not planning on retiring for the next 10 years.  A trusted investment advisor can help you with these critically important financial decisions.

Investment Advisor Commercial Break

Are you looking to take full advantage of opportunities in the stock market? Well, look no further than our list of trusted professional investment advisors. They will help you create an investment portfolio that will align with your financial goals. So, you can take your financial future into your own hands. If this sounds like something you would like to consider, please click the link below the video and set up an appointment, with one of our trusted investment advisors; they will provide you with the information you need, to take full advantage of opportunities, in the stock market!

Click here for further information.

Please Like, Subscribe, and Check the Bell, so you’ll

Know when New Weekly Videos are Uploaded.

Coronavirus Outbreak and Volcanic Eruptions Putting Some Asian Economies on the Brink of Collapse

Check Also

US Economy Looks to Continue Good Performance into 2020, But 2021 Could Be Another Story

We should expect some degree of decline in 2021 especially if 2020 sees rapid growth, simply because the economy goes through boom and bust cycles. So, 2021 could be the year for the bust phase of the business cycle because 2020 showed us the boom phase of the cycle.

Inflation and Mortgage Rate Rise as U.S. Economy Picks Up Steam, Despite Moderate Levels of Volatility and Lackluster Retail Sales Numbers

The CBOE Fear Index otherwise known as the Volatility Index (VIX) dropped by 1.31 or 9.4% on Friday from 13.94 to 12.63. What does all this mean? Well, simply put, the VIX measures the fear level of stock investors.

Market Volatility and Global Economic Slow Down Could Cause Widespread Use of Cryptocurrency by Governments

Here comes the irony of the U.S. economy. This irony shows, that increase volatility, is at play. The first proof of this, screams out in the form of the Disappointing ISM Manufacturing PMI for November, which came in at 48.1% missing market forecasts of 49.2% and a previous reading of 48.3%.

Trade Deal Uncertainty Dominated Market Sentiment Despite Upbeat GDP Numbers

Global growth continues to decline as a result of the prolonged trade war, and with the December 15 deadline fast approaching, it’s unclear whether or not a limited phase-one deal for a new round of tariff can even be achieved, this year.

The U.S. Economy Improved in October, Housing Starts and Building Permits Data Show

The U.S. economy continues to show signs of improvement. It has been the third week in a row that we have seen positive economic numbers. This week’s offering provides us with positive releases such as the Housing Starts, Building Permits, Existing Home Sales, Manufacturing PMI, Services PMI, and Consumer Sentiment Reports.

Recent Interest Rate Cuts, Already Showing Economic Improvements

When the economy begins to expand, the inflation rate will also begin to increase. Therefore, the Federal Reserve must be extremely careful when cutting interest rates because cutting interest rates too much could cause inflation to rise too quickly.

U.S. Economy Boosted by Improved Trade Deficit and ISM Non-Manufacturing PMI

The Trade Balance, released by the Bureau of Economic Analysis, measures the difference in value between imported and exported goods or services over the reported period. A positive number indicates that more goods and services were exported than imported. A Trade Balance with a negative value is called a trade deficit while a Trade Balance with a positive number is called a trade surplus. As we have mentioned previously a Trade Balance equals the value of exports minus the value of imports.

Copyright © 2020 · All Rights Reserved · Mstardom Finance, a Subsidiary of Mstardom, Inc.

%d bloggers like this: