February 10, 2020 – Gold and silver prices moved lower last week as U.S. equities moved to all-time highs. Fears over a virus outbreak is not enough to slow the enthusiasm for stocks. That could change when (and if) the supply chain from China suffers serious disruption from shuttered factories.

Opinions vary dramatically in terms of how serious the outbreak may be.

At one end of the spectrum are people who think the virus is far less of a concern than the typical flu. At the other end are those who see the virus as a pandemic with the potential to kill millions.

For now, it appears markets are discounting the threat almost entirely.

The complacency in U.S. markets is strange, given what facts can be gleaned from the sea of conflicting reports. Among these are that hundreds of millions of Chinese are under quarantine and major manufacturers such as Foxconn (who assembles Apple phones and tablets) have ceased production “until further notice.”

The strange resilience of the stock market reinforces the notion that buying is now almost entirely programmatic and fundamentals hardly matter.



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