Mark Twain coined the phrase, “History does not repeat itself, but it often rhymes.” The COVID19 virus has upended the financial markets and brought cities and countries to a standstill. So far, coronavirus has infected 118,101 people around the globe; there have been 4,262 confirmed deaths according to the Johns Hopkins University. On the last day of 2019, China reported unusual pneumonia cases to the World Health Organization, proving to be smart and proactive by the Chinese government. The scenario has been well documented by journalists and newscasters by the day and hour. The question remains, when will this dark storm pass? In 1918, the world suffered the Spanish Flu pandemic infecting 27% of the global population and a death toll possibly near 100 million. Fortunately, the coronavirus appears to be far more under control, call me an optimist.
In the early 20th century, the Dow Jones Industrial Average witnessed a 33% selloff preceding the 1918 pandemic, by the summer of 1919 the index gained 63% from the lows and surpassed its previous peak. Will the coronavirus pass? Of course. When will the market find its footing? Hopefully, soon. 1db.com/disclosures/ #financialfitness