Monday’s 20% drop in oil prices signals major problems with the global economy.
The crash in oil and growing spread of coronavirus sent stocks plunging. The S&P 500 was down 7% within minutes of the open. And that triggered a 15-minute trading halt.
These three biotech stocks are testing the Covid-19 vaccine. And early investors could see 3,825% profits in 2020.
Early biotech investors are already seeing huge profits in the last week. And you’re missing out on this bright area of the stock market.
Saudi Arabia and Russia just launched an oil war.
The International Energy Agency has just slashed its forecast for 2020.
Last month, the IEA estimated an 825,000-barrel-per-day increase in oil demand. That’s just been reversed to a decline of 90,000 barrels per day.
With falling demand, OPEC would usually cut oil supply in order to maintain higher prices.
At Friday’s OPEC meeting, Saudi Arabia had been pushing Russia to cut oil production. And when Russia refused . . .
Saudi Arabia decided to slash oil prices and increase oil production by 1 million barrels per day.
Do you own this tiny $5 biotech? It’s got the coronavirus vaccine (click here for details).
The Saudis want to crush rivals and punish Russia for the fallout with OPEC. The plunging price will also negatively affect U.S. oil producers.
Global demand for oil is currently down 2.5 million barrels per day in 2020. And China’s responsible for 1.8 million barrels of the decline.
The oil market is seeing a demand shock as global economies quickly head toward a recession. Meanwhile, more supply coming online will send prices even lower.
Plunging oil prices are a sign that a recession is coming.
The latest jobs report was better than expected. Yet that’s looking at what’s happened in the past – and not what’s coming next.
The oil market, U.S. Treasury bonds and the stock market are currently signaling a coming recession. And China, Italy and Germany are all heading for a huge economic slowdown.
As coronavirus cases expand rapidly in the U.S., our economy could quickly contract. That’s unless this coronavirus vaccine becomes available soon.
Corporate earnings will suffer a contraction in 2020.
Right now, stock prices are down more than 15% from their late February highs.
The news flow in the coming month will continue to be very negative. And this will weigh on the stock market.
Equity indices such as the Dow Jones industrials and S&P 500 could decline by an additional 20% from these levels.
Investors can seek safety in U.S. Treasury bonds, cash and gold.
Thus far, we’ve seen a huge rally in U.S. Treasury bonds. And gold is trading at the highest price since 2013.
Right now, I’m raising cash in my own investment accounts.
I hope that this crisis reverses quickly – and that stocks rebound. And if that happens, I’ll be happy to re-enter the market even at higher prices.
However, I expect that the markets will move lower before we put in a bottom. And holding on to cash will allow me to aggressively BUY stocks at cheaper prices in the coming weeks and months.
While most stocks are suffering . . .
These Covid-19 biotech stocks are taking off. In fact, Bill Gates just invested $10 million in this tiny $5 biotech stock.
You could be looking at 3,825% profits in 2020 with these little-known biotech stocks.
Yours in Health and Wealth,