Wall Street is fretting over the potential economic impact of the coronavirus (“COVID-19”), according CNBC’s Jim Cramer. CNBC reports:
Investors were spooked by a pickup in coronavirus cases in South Korea and triggered a sell-off on the stock market, CNBCâ€™sÂ Jim CramerÂ said Thursday.
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The Dow Jones Industrial Average dropped 128 points, the S&P 500 declined 0.38% and the Nasdaq Composite fell 0.67% during the trading day, though the major averages were down even more earlier in the session.
â€œBreathers like this one can extend the life of a rally,â€ the â€œMad Moneyâ€ host said. â€œBut without good news on the virus, Iâ€™m pretty certain that weâ€™ll have more breathers down the pike, so be prepared.â€
But it’s not all doom-and-gloom, according to Cramer, and this coronavirus correction may end up being an opportunity for markets to become more resilient.
â€œLook, all sell-offs are not created equal. Some are a lot worse than others. This was not a slash-and-burn sell-off, it was more like the kind of pruning you do to trees that are too near the power lines,â€ Cramer said. â€œI like it when the market gets pruned because trees grow back, and hopefully they grow back stronger, slower [and] steadier.â€
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