{"id":5290,"date":"2020-02-24T17:10:37","date_gmt":"2020-02-24T23:10:37","guid":{"rendered":"http:\/\/blog.steveblaising.com\/content\/?p=5290"},"modified":"2020-02-27T09:03:30","modified_gmt":"2020-02-27T15:03:30","slug":"will-the-coronavirus-crash-the-market","status":"publish","type":"post","link":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/","title":{"rendered":"Will the Coronavirus Crash the Market?"},"content":{"rendered":"<p>Pundits all over the media think the coronavirus could crash the market.<\/p>\n<figure id=\"attachment_5296\" aria-describedby=\"caption-attachment-5296\" style=\"width: 660px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-5296\" src=\"http:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais-1024x683.jpg\" alt=\"Coronavirus market crash\" width=\"660\" height=\"440\" srcset=\"https:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais-1024x683.jpg 1024w, https:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais-300x200.jpg 300w, https:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais-768x512.jpg 768w, https:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais.jpg 1200w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\" \/><figcaption id=\"caption-attachment-5296\" class=\"wp-caption-text\">Medical staff work in Jinyintan Hospital in Wuhan on February 13, 2020\/Getty Images<\/figcaption><\/figure>\n<p>On Friday, January 17th, after a spectacular 40% run-up that started the day after Christmas 2018, the Standard &amp; Poor\u2019s 500-Stock Index closed at 3,329.62.<\/p>\n<p>Five weeks and one day later, Monday, February 24, the Index closed a little over three percent lower at 3,225.52.<\/p>\n<p>I am always amused by the media&#8217;s use of the word &#8220;lost.&#8221;<\/p>\n<p><!--more--><\/p>\n<p>We have been invited by financial media to suspect that the blended value of 500 of the largest, best financed, most profitable businesses in America and the world has permanently \u201clost\u201d (which is what a loss is) three percent with more \u201closses\u201d to come due to the outbreak in China of a new strain of coronavirus.<\/p>\n<p>Permit me to doubt this, and to suggest that you, as a goal-focused long-term wealth builder, join me in doubting it.<\/p>\n<p>I do not claim to have any idea how far this outbreak will spread, nor how many lives it will claim, before it is brought under control.<\/p>\n<p>I\u2019m reasonably certain that many (or perhaps most) of the world\u2019s leading virologists and epidemiologists are working on it, and I believe that their efforts will ultimately succeed.<\/p>\n<p>Clearly, this is nothing more than my personal opinion.\u00a0 But if the rich history of similar outbreaks in this century is any guide, this would seem to be a reasonable hypothesis.<\/p>\n<p>I draw your attention to. . .<\/p>\n<ul>\n<li>SARS in 2003-04, also originating in China<\/li>\n<li>The bird flu epidemic in 2005-2006<\/li>\n<li>In 2009, a new strain of swine flu<\/li>\n<li>The Ebola outbreak in the autumn of 2014<\/li>\n<li>The mosquito-borne Zika virus outbreak in 2016-17<\/li>\n<\/ul>\n<p>Without belaboring the point: the super-spreader of SARS \u2013 a fish seller \u2013 checked into a hospital in Guangzhou on January 31, 2003, basically infecting the whole staff.<\/p>\n<p>The epidemic exploded from there.<\/p>\n<p>On that first day of the litany of epidemics cited above, the S&amp;P 500 closed at 855.70.<\/p>\n<p>Seventeen years and six epidemics later to date the Index closed over three times higher.<\/p>\n<p>I\u2019m confident that you see where I\u2019m going with this.<\/p>\n<ul>\n<li>Corrections are quite common<\/li>\n<li>No one can forecast them much less time them<\/li>\n<li>They are irrelevant to your long term goals<\/li>\n<\/ul>\n<p>Daily declines have always been a part of the long-term up in the S&amp;P 500 even when the daily declines pile up in nasty three year segments like 2000-2002 or a one year segment like 2008.<\/p>\n<p>Your stock portfolio is not an index that just goes up or down every day.<\/p>\n<p>It is a portfolio of companies with earnings.<\/p>\n<p>The 2019 earnings of the S&amp;P 500 has risen to $162.35 from $83.77 in 2010 almost doubling in ten years.\u00a0 The 2019 cash dividend has more than doubled in ten years from $22.65 in 2010 to $58.80.<\/p>\n<p>No virus or market correction in the past has slowed these earnings down.<\/p>\n<p>Do you really think any will in the future?<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Pundits all over the media think the coronavirus could crash the market. On Friday, January 17th, after a spectacular 40% run-up that started the day after Christmas 2018, the Standard &amp; Poor\u2019s 500-Stock Index closed at 3,329.62. Five weeks and one day later, Monday, February 24, the Index closed a little over three percent lower [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cos_headline_score":0,"cos_seo_score":0,"cos_headline_text":"","cos_headline_has_been_analyzed":false,"cos_last_analyzed_headline":[],"footnotes":""},"categories":[81],"tags":[192,193],"class_list":["post-5290","post","type-post","status-publish","format-standard","hentry","category-money","tag-coronavirus","tag-stock-market"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Will the Coronavirus Crash the Market? - Steve Blaising<\/title>\n<meta name=\"description\" content=\"Will the coronavirus crash the market? Pundits all over the media think so. But you must always remember to do one thing for long term wealth.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Will the Coronavirus Crash the Market?\" \/>\n<meta property=\"og:description\" content=\"Will the coronavirus crash the market? Pundits all over the media think so. But you must always remember to do one thing for long term wealth.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/\" \/>\n<meta property=\"og:site_name\" content=\"Steve Blaising\" \/>\n<meta property=\"article:published_time\" content=\"2020-02-24T23:10:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-27T15:03:30+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais-1024x683.jpg\" \/>\n<meta name=\"author\" content=\"Steve Blaising\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Steve Blaising\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/\"},\"author\":{\"name\":\"Steve Blaising\",\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/#\\\/schema\\\/person\\\/40a659701b6bed01005bdbf57f264c20\"},\"headline\":\"Will the Coronavirus Crash the Market?\",\"datePublished\":\"2020-02-24T23:10:37+00:00\",\"dateModified\":\"2020-02-27T15:03:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/\"},\"wordCount\":499,\"commentCount\":4,\"publisher\":{\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/#\\\/schema\\\/person\\\/40a659701b6bed01005bdbf57f264c20\"},\"image\":{\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/blog.steveblaising.com\\\/content\\\/wp-content\\\/uploads\\\/2020\\\/02\\\/Coronavirus-blog.steveblais-1024x683.jpg\",\"keywords\":[\"coronavirus\",\"stock market\"],\"articleSection\":[\"Money\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/\",\"url\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/\",\"name\":\"Will the Coronavirus Crash the Market? - Steve Blaising\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/blog.steveblaising.com\\\/content\\\/wp-content\\\/uploads\\\/2020\\\/02\\\/Coronavirus-blog.steveblais-1024x683.jpg\",\"datePublished\":\"2020-02-24T23:10:37+00:00\",\"dateModified\":\"2020-02-27T15:03:30+00:00\",\"description\":\"Will the coronavirus crash the market? Pundits all over the media think so. But you must always remember to do one thing for long term wealth.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/#primaryimage\",\"url\":\"http:\\\/\\\/blog.steveblaising.com\\\/content\\\/wp-content\\\/uploads\\\/2020\\\/02\\\/Coronavirus-blog.steveblais-1024x683.jpg\",\"contentUrl\":\"http:\\\/\\\/blog.steveblaising.com\\\/content\\\/wp-content\\\/uploads\\\/2020\\\/02\\\/Coronavirus-blog.steveblais-1024x683.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/will-the-coronavirus-crash-the-market\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Will the Coronavirus Crash the Market?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/#website\",\"url\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/\",\"name\":\"Blaising View\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/#\\\/schema\\\/person\\\/40a659701b6bed01005bdbf57f264c20\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/#\\\/schema\\\/person\\\/40a659701b6bed01005bdbf57f264c20\",\"name\":\"Steve Blaising\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/wp-content\\\/uploads\\\/2023\\\/08\\\/Steve-Original-Backyard-scaled.jpg\",\"url\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/wp-content\\\/uploads\\\/2023\\\/08\\\/Steve-Original-Backyard-scaled.jpg\",\"contentUrl\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/wp-content\\\/uploads\\\/2023\\\/08\\\/Steve-Original-Backyard-scaled.jpg\",\"width\":1920,\"height\":2560,\"caption\":\"Steve Blaising\"},\"logo\":{\"@id\":\"https:\\\/\\\/blog.steveblaising.com\\\/content\\\/wp-content\\\/uploads\\\/2023\\\/08\\\/Steve-Original-Backyard-scaled.jpg\"},\"sameAs\":[\"http:\\\/\\\/SteveBlaising.com\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Will the Coronavirus Crash the Market? - Steve Blaising","description":"Will the coronavirus crash the market? Pundits all over the media think so. But you must always remember to do one thing for long term wealth.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/","og_locale":"en_US","og_type":"article","og_title":"Will the Coronavirus Crash the Market?","og_description":"Will the coronavirus crash the market? Pundits all over the media think so. But you must always remember to do one thing for long term wealth.","og_url":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/","og_site_name":"Steve Blaising","article_published_time":"2020-02-24T23:10:37+00:00","article_modified_time":"2020-02-27T15:03:30+00:00","og_image":[{"url":"http:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais-1024x683.jpg","type":"","width":"","height":""}],"author":"Steve Blaising","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Steve Blaising","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/#article","isPartOf":{"@id":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/"},"author":{"name":"Steve Blaising","@id":"https:\/\/blog.steveblaising.com\/content\/#\/schema\/person\/40a659701b6bed01005bdbf57f264c20"},"headline":"Will the Coronavirus Crash the Market?","datePublished":"2020-02-24T23:10:37+00:00","dateModified":"2020-02-27T15:03:30+00:00","mainEntityOfPage":{"@id":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/"},"wordCount":499,"commentCount":4,"publisher":{"@id":"https:\/\/blog.steveblaising.com\/content\/#\/schema\/person\/40a659701b6bed01005bdbf57f264c20"},"image":{"@id":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/#primaryimage"},"thumbnailUrl":"http:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais-1024x683.jpg","keywords":["coronavirus","stock market"],"articleSection":["Money"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/","url":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/","name":"Will the Coronavirus Crash the Market? - Steve Blaising","isPartOf":{"@id":"https:\/\/blog.steveblaising.com\/content\/#website"},"primaryImageOfPage":{"@id":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/#primaryimage"},"image":{"@id":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/#primaryimage"},"thumbnailUrl":"http:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais-1024x683.jpg","datePublished":"2020-02-24T23:10:37+00:00","dateModified":"2020-02-27T15:03:30+00:00","description":"Will the coronavirus crash the market? Pundits all over the media think so. But you must always remember to do one thing for long term wealth.","breadcrumb":{"@id":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/#primaryimage","url":"http:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais-1024x683.jpg","contentUrl":"http:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2020\/02\/Coronavirus-blog.steveblais-1024x683.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/blog.steveblaising.com\/content\/will-the-coronavirus-crash-the-market\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/blog.steveblaising.com\/content\/"},{"@type":"ListItem","position":2,"name":"Will the Coronavirus Crash the Market?"}]},{"@type":"WebSite","@id":"https:\/\/blog.steveblaising.com\/content\/#website","url":"https:\/\/blog.steveblaising.com\/content\/","name":"Blaising View","description":"","publisher":{"@id":"https:\/\/blog.steveblaising.com\/content\/#\/schema\/person\/40a659701b6bed01005bdbf57f264c20"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/blog.steveblaising.com\/content\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"https:\/\/blog.steveblaising.com\/content\/#\/schema\/person\/40a659701b6bed01005bdbf57f264c20","name":"Steve Blaising","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2023\/08\/Steve-Original-Backyard-scaled.jpg","url":"https:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2023\/08\/Steve-Original-Backyard-scaled.jpg","contentUrl":"https:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2023\/08\/Steve-Original-Backyard-scaled.jpg","width":1920,"height":2560,"caption":"Steve Blaising"},"logo":{"@id":"https:\/\/blog.steveblaising.com\/content\/wp-content\/uploads\/2023\/08\/Steve-Original-Backyard-scaled.jpg"},"sameAs":["http:\/\/SteveBlaising.com"]}]}},"_links":{"self":[{"href":"https:\/\/blog.steveblaising.com\/content\/wp-json\/wp\/v2\/posts\/5290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.steveblaising.com\/content\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.steveblaising.com\/content\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.steveblaising.com\/content\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.steveblaising.com\/content\/wp-json\/wp\/v2\/comments?post=5290"}],"version-history":[{"count":17,"href":"https:\/\/blog.steveblaising.com\/content\/wp-json\/wp\/v2\/posts\/5290\/revisions"}],"predecessor-version":[{"id":5309,"href":"https:\/\/blog.steveblaising.com\/content\/wp-json\/wp\/v2\/posts\/5290\/revisions\/5309"}],"wp:attachment":[{"href":"https:\/\/blog.steveblaising.com\/content\/wp-json\/wp\/v2\/media?parent=5290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.steveblaising.com\/content\/wp-json\/wp\/v2\/categories?post=5290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.steveblaising.com\/content\/wp-json\/wp\/v2\/tags?post=5290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}