By John Pangere, lead analyst, Strategic Trader China’s coronavirus has the world markets in panic mode. On Friday, the Dow Jones dropped more than 600 points (about 2%). And the S&P 500 had its worst day since August 2019. While the market started to recover some of its losses today, plenty of investors are still spooked… and there could be more volatility on the way in the short term. It’s understandable if you’re concerned how these events could affect your portfolio. But it’s also important to assess the situation calmly – without giving in to the group hysteria. As I’ll show you today, this isn’t the first time a virus has sent markets reeling. But there’s more going on here than what the mainstream media is telling you… The Wuhan Virus Is Causing Global Panic The coronavirus, also known as the “Wuhan virus,” has killed more than 360 people. Another 17,000 people are infected, including 11 confirmed cases in the U.S. And last week, the World Health Organization (WHO) even declared the outbreak a global health emergency. The virus might have originated in a food market in Wuhan, a central Chinese city with around 11 million people. China has put Wuhan and more than a dozen other cities on lockdown, meaning over 50 million people are essentially on house arrest. Many airlines suspended flights to mainland China. Russia closed its border. This type of isolation grinds an economy nearly to a halt. That spooks financial markets. For instance, from January 23 to January 27, the S&P 500 shed 3% with alarm bells over the virus ringing. But instead of looking at the next fact to panic over, let’s look back at SARS (severe acute respiratory syndrome). It too was a respiratory virus that sent markets reeling. In 2002 and 2003, the flu-like virus SARS, and a similar condition MERS (Middle East respiratory syndrome), killed about 1,600 people combined. It took governments and health officials close to a year to get the viruses under control. When the first SARS outbreak was reported, the S&P 500 lost 12% over the following four months. However, by the time the disease was under control, it had rallied back about 25%. You can see this in the chart below. 
This is similar to what’s happening right now with the Wuhan virus. These episodes tend to create short-term pandemonium. And while they may be worth watching, it doesn’t justify giving in to full-on panic. Keep in mind that while the virus has killed more than 360 people, the regular flu has claimed many more this year. In the U.S. alone, an estimated 8,200 people have died from the flu this season, including 54 children, according to the Centers for Disease Control. At the end of the day, what matters most in this case may be the mortality rate of the virus. Even though the Wuhan virus seems to be spreading faster than SARS, its mortality rate is only around 2% as reported. Compare that to SARS, which boasted a mortality rate of 6.5%, or MERS, which had an astonishing 38% mortality rate. Of course, we hope officials can contain the spread of the virus and prevent it from taking more lives. But it’s also important to be aware of how this event can affect your holdings. If the 2% mortality rate holds, expect to see investors come back in full force. In the short term, we could see more market volatility as this plays out. But that shouldn’t scare you out of your positions. | Recommended Link | Tired of the 5G hype? Try this instead… 5G and "AI" are all the rage… But here's what you likely don't know: The world's best investors are lining up behind an explosive new technology that could trump them all. Warren Buffett calls it “ingenious.” And The Wall Street Journal adds: "It's a foundational technology, like the Internet and electricity." Apple's co-founder, Steve Wozniak, who said 5G "is not going to impact me much" … is calling this "the future." In fact, according to research from the World Economic Forum, this new technology is on pace to be 32 times bigger than 5G! On January 1, 2020, an important event just happened that will set this technology flying. But that's not the only one… 3 major catalysts are on tap for "Genesis" technology in 2020. | | | | Here’s the Safest Bet Now Meanwhile, this most recent episode of panic highlights the benefits of owning gold. Gold hit two highs last week: a three-week high last Monday, before rallying to a seven-year high on Friday. Gold keeps making new closing highs with very little attention in the mainstream press. Take a moment to think back to early May 2019 – just nine months ago – when gold was at $1,270. As of last Friday, gold has rallied 25% higher since then. Compare that to just a 10.6% gain for the S&P 500. During that 25% advance in gold, the financial press blamed it on Iran, the alleged trade war with China, drama on the U.S. political stage, and now the Wuhan virus. Gold surges on every fear-driven headline right now – and it still gets ignored. My colleague E.B. Tucker has seen this before. Back in December 2018, he predicted that gold would reach $1,500 an ounce in 2019, even though most financial advisors were bearish on the metal. It reached that mark just eight months later, in August 2019. Now, E.B. is convinced that gold would likely have to clear its all-time high of $1,900 an ounce in 2011 before the mainstream financial press catches on. And the best time to latch onto a profitable trend is when no one is paying attention. So consider adding gold to your portfolio today if you haven’t already. If you’re brand new to gold, you should start with buying physical gold that you can hold in your hand. You can start with common 1-ounce coins like the ones offered here by Gainesville Coins. (I asked Gainesville Coins to create this page as a starting point for Casey Daily Dispatch subscribers who are new to physical gold. We do not receive any compensation from Gainesville Coins for bringing you this offer.) We’re still in the early stages for gold. In fact, you’re arriving at the game in the middle of the first inning… which means there’s still time to get positioned. Regards, John Pangere
Lead Analyst, Strategic Trader 
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In Case You Missed It… Is Washington on the verge of a massive announcement? This top financial expert just returned from a private meeting with members of the Senate Financial Services Committee… And he's got his hands on a major announcement. He says, "In 3 decades, I've NEVER seen anything like this. Every retiree and investor in America should be alert." Click here to watch the full briefing. 
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