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, CNBC’s Jim Cramer said Thursday.
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.
“Breathers like this one can extend the life of a rally,” the “Mad Money” host said. “But without good news on the virus, I’m pretty certain that we’ll have more breathers down the pike, so be prepared.”
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.
“Look, 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,” Cramer said. “I like it when the market gets pruned because trees grow back, and hopefully they grow back stronger, slower [and] steadier.”