How to Profit in the Stock Market as Coronavirus Cure Nears
Wealthpress Head Trader Roger Scott joined Midas Letter to discuss the perplexing nature of the stock market this week as the Coronavirus pandemic continues.
There has been further record breaking news released this week that theoretically should have seen markets take a nose dive on a fundamental basis.
5 million more people in the US workforce filed first-time unemployment claims this week, bringing the total statistics to 22 million in one month. China’s GDP contracted 6.8% in the Q1 – its first decline in the economy since 1991.
However, the S&P 500 (^SPX) has ignored these fundamental shocks to the global economy and in contrary has reached almost bullish territory – growing 4.64% since the low at the beginning of the week.
The Head Trader has been shorting the CBOE Volatility Index (^VIX) – the index which measures market volatility and is often used to track investor fear. As the S&P 500 rises consistently higher, the less uncertain investors are speculated to be, driving the VIX price down.
Roger Scott is looking towards the medical sector as a handful of pharmaceutical companies have taken steps closer to find a cure for COVID-19.
Early data released by Gilead Sciences, Inc. (NASDAQ:GILD) suggest patients are responding positively to its coronavirus drug. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) have identified virus-neutralizing antibodies and have plans to initiate large-scale manufacturing of its treatment therapy.
Watch the complete interview for a comprehensive analysis of overall economic sentiment and forward projections looking into next week and the longer-term.
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