Urgent Biotech Briefing: American biotechnology companies are rushing to create a vaccine for Covid-19. And shares could surge as much as 3,825% by the time the FDA approves these drugs. Go here for urgent details.
China is now open for business . . .
After shutting down the economy for over two months due to the coronavirus . . .
The world’s #1 economy is now springing back to life. And China reports that all major industrial companies have begun operating once again.
China claims that it has finally contained Covid-19. The government says that all new cases in China are from travelers entering the country – rather than community-spread.
That’s why the Chinese government is relaxing social distancing measures even in hard hit areas such as Wuhan (China is also testing this vaccine – go here for details).
It’s crucial to monitor the number of cases in China in the coming weeks.
Here in the U.S., President Trump is extending the social distancing guidelines through April 30.
Only a vaccine can STOP the spread of the coronavirus and make America and our economy safe from this deadly virus. Click here for my LIVE briefing.
Last week, the U.S. overtook China as the country with the most cases of Covid-19. As of today, the U.S. has 145,000 cases versus just 81,000 in China.
The U.S. is now experiencing the same scenario as China, just on a six-week delay.
It’s too early to determine whether U.S. stocks have bottomed. Right now, we may simply be seeing selling fatigue.
That means everyone who has wanted to sell has now done so. While the health crisis expands – and the news gets worse – investors are ignoring that negative news in the near-term.
For example, everyone knows that the number of cases and deaths will continue growing. And we all expect that social distancing will continue until May or beyond.
Top biotech stocks getting “fast tracked” by the FDA . . . get details right here.
It’s the unexpected bad news that could send stocks lower to re-test last week’s lows.
These are the top three risks that I’m watching right now. Any of these could send stocks plunging to new lows.
First, China case load numbers.
Let’s see what happens when China goes back to work. The country is stopping the quarantine. And it’s lifting social-distancing measures.
For example, Hong Kong and Japan are now seeing a second wave of cases. And this suggests that relaxing social distancing too early may result in more cases.
It’s crucial that China’s case load not increase.
It would signal that China may need to shut down the economy a second time. And that would similarly suggest that the shutdown in the U.S. and around the world could be much longer than the currently accepted six- to eight-week period.
Second, corporate earnings.
American companies begin reporting quarterly earnings the second week of April. Everyone knows that the numbers will be weak across the board. Yet the first-quarter results are a small preview of what’s to come. That’s because the quarter only included one month affected by the coronavirus.
The outlook from corporate America is likely to be worse than most expect. After all, most analysts are optimistic. And the message from CEOs and CFOs could quickly change the earnings outlook for 2020.
Third, rapid expansion of cases in major U.S. cities.
Right now, New York is ground zero for Covid-19. In the coming weeks we’ll see if and how the virus has truly spread in other major cities . . . and whether we get outbreaks over 10,000 or 20,000 cases in other cities such as Boston, Chicago, Denver, Los Angeles and San Francisco.
It seems that the market may not be prepared for an outbreak of this scale in all the major cities. If that happens, expect it to weigh on stocks.
Containment measures here in the U.S. will likely slow the spread in the coming weeks.
What we really need is an FDA-approved Covid-19 vaccine.
Because a vaccine would STOP the heath crisis in its tracks. And it would help assure that coronavirus doesn’t come back again in a few months or next year.
That’s why these biotechs are the ONLY stocks I’m buying today.
Yours in Health & Wealth,