Skip to main content

Market Overview

Friday's Market Minute: Coronavirus Can Create Opportunities, Too

Friday's Market Minute: Coronavirus Can Create Opportunities, Too

The market officially hit correction territory yesterday, meaning it fell over 10% from its highs. Considering the pace of the rally in the last months of 2019 and into this year, some market watchers may welcome the sell-off as a chance to scale into stocks. One thing to keep in mind is that despite the flurry of negative headlines, every correction in the stock market's history has eventually led to a new high.

The timing varies, of course, but coronavirus isn't an industry collapse, it's a disease, and should fade away like the flu as the year continues. Meanwhile, many stocks are taking a beating because they lowered guidance, seeing lower demand from mass quarantines and travel difficulties. But which companies will be able to recover from it? Probably not clothing retailers: with how quickly fashion changes, any unsold inventory stays unsold.

Travel companies could see a boost in the summer, when people who would've vacationed in the winter have money to spend, but will they have enough capacity? But a company like Apple Inc (NASDAQ: AAPL), or Microsoft Corporation (NASDAQ: MSFT), whose problem is suppliers more than demand, could recover and continue to show strength once things are back online: phones and laptops can't go bad.

Image by Public Co from Pixabay


Related Articles (AAPL + MSFT)

View Comments and Join the Discussion!

Posted-In: Earnings News Guidance Emerging Markets Travel Global Top Stories Markets Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at