When is a virus not the reason for a contagion? That’s what is hitting the stock market today.
As Monday morning futures indicate a huge sell off, people will attribute the cratering to the coronavirus but that is not the whole story.
Crude prices are down 20 percent as Saudi Arabia is dumping oil on the market as oil demand has cratered from lack of China shipping and a government crackdown on probable coup members in the royal family.
Gold is moving up toward $1,700 as the 10 year treasury bond hits an all-time low with investors piling in to preserve wealth.
Stocks go limit down — meaning circuit breakers kick in to stem the losses — look for Fed chief Jerome Powell to come out today with another rate cut to shock the market out of its malaise.
I will come back later today to comment on how the market reacts to this latest news.