Markets spit the dummy as virus fears dominate

Markets spit the dummy as virus fears dominate

The heading says it all. Markets, what markets? All of them. I have truncated the Weekly today, leaving out the usual comments on company situations. There is no point in providing rational fundamental commentary at a time when the markets have fallen to irrationality.

It is fair enough to have the growth premium in stock prices removed for the time being, but it is now going beyond that. People are selling anything they can out of fear and panic. In the smaller end of the mining sector where there is no growth, just speculation, the only thing stopping heavier falls is the lack of volume. It is not where you can raise funds by selling.

Friday’s move on the gold price will guarantee a wave of selling in gold stocks on Monday’s opening, irrespective of what the rest of the market will do. Gold has let the bulls down last week.