Expect more selling, more fear, more uncertainty for weeks to come, especially as the virus spreads in the U.S. Best to raise cash and be ready to max out on margin when we finally reach a bottom. We could be talking about weeks or even months from now.
A German tourist goes to a Greek hotel…. He gives the owner 100 Euros and asks for some room keys so he can take a look at them and see if he likes them. He leaves the 100 euros as a safety deposit…. The hotel owner gives him all the keys because he doesn’t even have one guest….
As soon as the German tourist is upstairs to look at the rooms, the Greek hotel owner takes the 100 euros and runs to the butcher shop across the street to pay his outstanding balance. He runs back to his hotel.
The butcher takes the money and runs to the farmer to pay for the pig he bought last week.
The farmer takes the 100 euros and runs to the only prostitute in town because he still has to pay for his two last visits.
The prostitute takes the money and runs to the hotel and gives the 100 euro back to the hotel owner. She needed to pay for the room she used twice last week…. At that moment, the German tourist comes down the stairs. He says that none of the rooms were to his liking. He gives the keys back to the hotel owner who gives him back his deposit. The tourist takes his 100 euros back and leaves the hotel….
Result: all outstanding balances are paid and nobody has money! This is how European economy works!