Unloved Bull Markets

Chapter 14And Then It Ended with a Crash

One theory states that in Wuhan, Hubei province, China, a case of pneumonia was caused by a novel coronavirus in December 2019. Bats are thought to be regular reservoirs for SARS-CoV-2, but it is unlikely the virus was transmitted directly to humans. It is more likely that there was an intermediate host such as snakes or Malayan pangolins. A pangolin is a scaly, otherwise harmless animal that eats ants. The transmission of the virus from an animal to the human host likely occurred at a live animal market, Hunan Seafood Wholesale Market. At these “wet markets” animals, some exotic, are butchered in a booth adjacent to a booth that might be selling produce. Another theory is that the virus escaped a laboratory in that same province. A third theory is that it originated in a different province. From early March 2020 to early April cases of COVID-19 raced to over a million worldwide, with over 300,000 in the United States. However or wherever it originated, it killed the great bull market.

Stock Market Crash

From the all-time high February 19, 2020, the stock market crashed. In speed and depth, the drop in the market was very similar to the three previous crashes: Octobers of 1929, 1987, and 2008. One difference is that with the previous three, the market was already dropping mildly, then crashed. This time it crashed from an all-time high in just twenty-three trading days. Although those previous crashes included, and gained notoriety ...