Week of March 2, 2020
Global markets lost $6 trillion in value in six days.
All as investors panic about the coronavirus, and fear a sizable dent to global growth. To date, 83,000 people have been affected in nearly 50 countries with nearly 3,000 deaths.
“The current, and largest concern now is if consumer’s start pulling back on their spending – consumer spending has been supporting the economy, as it makes up for disappointing corporate expenditures,” says S&P Dow Jones Indices’ Howard Silverblatt, as quoted by CNBC.
And while investors may want to buy the excessive fear, top economists warn against that.
Economist Mohamed El-Erian noted, “I stress, this is different. Just because buying market dips has worked in the past does not mean it’s going to work this time. I would continue to resist, as hard as it is, to simply buy the dip.”
Some of the safest stocks in the market continue to be coronavirus opportunities.
Opportunity No. 1
Alpha Pro Tech (APT)
We featured Alpha Pro Tech (APT) just last week, as it traded at $6.65. It’s now up to $25 a share, and could run higher on global virus fears. Just recently, APT announced it booked over $10.4 million in orders for APT’s proprietary N-95 Particulate Respirator face mask since January 27, 2020 as a result of increased customer demand due to the outbreak of the novel Wuhan coronavirus (Covid-19).
Opportunity No. 2
While CODX has been explosive, the run may be far from over. All after the company received security clearance for its Logix Smart Coronavirus COVID-19 test. Reportedly, it’ll be immediately available for export from the U.S. for rapid testing.
Opportunity No. 3
Inovio Biomedical Corp. (INO)
We spoke about INO last week, as well as it traded at $4.10. The company was able to develop a vaccine after obtaining the DNA sequence of the coronavirus. It’s hoping to start Phase 1 clinical trials this year, and has received a $9 million grant from the Coalition of Epidemic Preparedness to develop the vaccine.