A Word to Stock Market Investors: ‘Locate Your Nearest Exit Now’

US markets retreated a touch overnight. But they’re still hovering near record highs. And futures markets indicate they’ll be back in the green tomorrow (overnight our time).

Meanwhile the ASX 200 is posting another day of gains, up 0.42% at time of writing.

This comes despite more dire news surrounding the coronavirus. And the Aussie government extending its travel ban on foreigners who’ve been in China for an additional week. The travel ban affects almost 100,000 Chinese students studying in Australian universities. It now runs through 22 February. But it could well get pushed out again.

Yet China’s CSI 300 index is up 0.80% in intraday trading…

Of course, these are just the index results. Some stocks are feeling the impact of the travel bans and factory closures more than others. While many continue to post gains.

Investors have the world’s central bankers to thank for that.

With central banks fuelling the longest stock market bull run in history, investors have grown accustomed to the old ‘bad news is good news’ mantra. When things turn pear-shaped…the central banks throw more cheap money around.

The European Central Bank (ECB) is even dipping its toe in combatting climate change. So it’s a safe bet central banks will pull out all the stops to support markets should the coronavirus continue to spread.

But even if COVID-19 is contained sooner than later, as we fervently hope, do central banks have enough fire power to keep markets from tumbling?

The Rum Rebellion editor Vern Gowdie believes with trillions of debt-fuelled dollars already sloshing around the world, they’re at the end of their tether.

His advice to Aussie investors?

Head for the exits:

When is the best time to panic?

The simple answer is…“before everyone else does”.

Unfortunately, that’s not how it works.

The vast majority do the opposite of what’s required to build and (more importantly) retain long-term wealth.

Vern believes most Australians should sell all of their stock holdings. But there are five stocks in particular he believes are worth considering selling right now. Today. You can get the full details in his free special report here.

Bernd Struben is an Editor of The Rum Rebellion. In this capacity, he has access to one of the most intriguing and powerful networks of practical investment insight anywhere in the world.

Bernd has worked on four different continents, and has more than 20 years of professional finance, editorial, and management experience. He holds a degree in economics.

The Rum Rebellion