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 AAPL, or Microsoft Corporation 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.

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