Coronavirus tally increases globally; Key stocks flash bullish signal!
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As the world suddenly woke up to the Coronavirus global pandemic, stock markets globally felt the pinch of disruptions and general concern.

The past two weeks have been the worst period for stocks since the 2008 financial crisis, with stock indices like the S&P 500 officially sinking into bear market territory.

Governments across the public are scrambling to control public hysteria and manage the pandemic. Information is a powerful tool in combating the virus because adjusting behavioral patterns is vital in stopping its spread.

Accordingly, measures like wearing face-masks and avoiding unnecessary handshakes, though seemingly mundane, have to be relayed to the public.

Investors were wary of how the US government will handle the pandemic. On Friday, President Trump took the bold step of declaring a national emergency, two days after his televised speech on combating Coronavirus had failed to reassure markets.

The million-dollar question is whether to buy stocks and hold for the long-term when the market is down or wait it out. Buying the dip is a common phrase, but it all depends on how fast the market will recover, and how much you can handle a bear market if it lasts a while.

Stocks Rebound Following A Tough Week

Friday was a relief for investors as key indices had some impressive rallies. The Dow Jones industrial index closed 1,985 points higher, the equivalent of a 9.4% gain, while the S&P 500 rose 9.2%. This rally came after a terrible Thursday when major stock indices had spectacular declines.

Leading tech stocks flashed bullish signals. Apple and Facebook jumped 10% each. Alphabet, Google's parent company, had a 9.3% gain while Amazon capped the strong performance of tech stocks with 6.3%. The stocks have strong fundamentals and were at the forefront of the incredible stock market rally of 2019. Tech executives had a meeting in the White House in the midweek to discuss Coronavirus mitigation.

Apple has significant business interests in China. The tech giant announced that it would reopen its stores in China as the country appears to be getting a handle on its Coronavirus situation. However, Apple has closed retail stores outside China until March 27th as a preventative measure. CEO Tim Cook announced a $15 million fund to help in the worldwide response to the crisis.

Notably, some stocks have had a boom with Coronavirus-induced volatility. Stocks in telehealth, biotech, and work-from-home companies have had a significant uptick.

Inevitably, some sectors were going to benefit from such a crisis. These include mask producers, hazmat suit makers, and pharmaceutical companies, among others. Companies like Alpha Pro Tech (APT on NYSE), Co-diagnostics (CODX-NASDAQ), and Allied Healthcare Products (AHPI-NASDAQ) have had over 400% each year-to-date returns. It may be an unfortunate moment for humanity, but those who manufacture essential products like test-kits have had their stars align.

Airline stocks have had a rough time. This is in line with expectations given the travel bans and global disruptions to movement. Similarly, logistics and hospitality companies are having a rough stretch as many stay away from their usual holiday destinations.

The White House Takes Action

President Trump has had to ramp up response efforts to the outbreak in the USA. His administration has come under criticism for not taking the virus seriously enough, with of Trump's allies even alleging that this outbreak was a hoax to get at the president.

Investors wanted to hear a strong response, both from healthcare and economic perspective. For the latter, it is not yet clear whether this outbreak will have a serious drag on the US economy. Should the virus get contained fast, the effect will be minimal to moderate.

Besides the national emergency, the White House also reached a deal with the US House of Representatives on an aid package to contain the outbreak. This deal provides sick pay, free testing, and other resources to help mitigate the effects of the outbreak.

Meanwhile, the Federal Reserve is looking at a stimulus package for the economy in addition to recent rate cuts. The stimulus package includes a massive short-term lending program to facilitate smooth trading in US Treasuries.

By the end of Friday, the death toll within the USA stood at 41, with confirmed or presumptive cases surpassing 2,000. Globally, the death toll is close to 5,000, the overwhelming majority being from China, which was ground zero for the pandemic. Italy has also suffered devastation from the outbreak, with deaths crossing 1,000.

Major sports leagues like the NBA and MLB have suspended their leagues as a preventive measure. Similarly, many significant institutions are advising their employees to work from home. This trend is similar to most of Europe affected countries in Asia. Such a coordinated response is how to beat such an outbreak. The priority must always be public health.