Cardinal Update – March 2020

When Fear Goes Viral – Fear of the Coronavirus (Covid-19) has caused most markets around the globe to fall into correction territory, meaning a drop of 10% or more from highs.

As of this writing, the TSX has fallen by 10% from its high and the S&P 500 is down 12.5%. Markets have probably not bottomed out yet. New Covid-19 cases are spreading rapidly outside of China and we suspect that there will be clusters of new cases in certain cities of North America, similar to what has happened in Northern Italy and in Daegu, South Korea. China has proven that it is possible to control the
spread of the virus, but this has involved an almost complete quarantine in Hubei, where 90% of its infections are, as well as a fair amount of restrictions in the rest of the country.

Click here to read more:  Cardinal Update – March 2020