Wuhan Coronavirus: Market Risks & Opportunities

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Risks of Wuhan Coronavirus

As you can see from the world map below, the virus originated in Wuhan, China, and has slowly spread to other parts of the world.

To date, the number of infected cases has reached almost 10,000, surpassing the 8,000+ of SARS.

The WHO has also declared it a global emergency, which China quarantining cities of millions, and many countries restricting travel to and from China.

In my opinion, the scariest thing is how contagious this new virus is.

If you look at the chart below, you can the exponential increase in the outbreak, compared to the much slower spread of SARS.

In addition, there is a long incubation period of 2 to 14 days, where no symptoms might manifest, but victims remain contagious during that time.

That means that a handful of people have the potential to spread it to many, many others unknowingly.

Stock Market Opportunities

Looking at the data table below, the stock market tends to recover pretty quickly after any epidemics, and most of the time it gives a positive return within 3 months.

This means that the market tends to react overly negatively due to panic and fear, causing it to price in a much worse scenario than what usually happens in reality.

Hopefully, the virus does not escalate out of hand this time and become a black swan event.

Recent Trading Opportunities

Looking at our recent trade calls on our free Telegram channel, the AUD and NZD has shown much weakness, as well as commodities like Crude Oil (about 17% profit from shorting), whereas Bitcoin has performed well, gunning for the $10,000 level.

The thing about trading is that although you might spend time reading news or studying your charts or discussing trades ideas daily, the truth is you only need a handful of good trades every month to be very profitable. Quality, not quantity!

Stay tuned in our Telegram channel for the best trading opportunities!

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Spencer Li

Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.