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Is the Coronavirus a Black Swan Event?

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  • (0:30) - The Growing Impact of The Coronavirus
  • (5:45) - How Does This Differ From Past Pandemics?
  • (12:00) - Is This A Stock Buying Opportunity?
  • (17:10) - Stocks and Sectors To Keep On Your Radar
  • (24:20) - Episode Roundup: KEY, IIPR, BOOT, XOM, MAC
  •                 Podcast@Zacks.com

Welcome to Episode #210 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is joined by John Blank, Zacks Chief Equity Strategist, who is also a PhD economist, to talk about 2020’s most important investing topic: the coronavirus and the impacts on the Chinese economy.

Could This Virus be a Black Swan Event?

The whole point of a “black swan” investing event is that no one would have predicted it.

Who could have foreseen a virus breaking out in one of China’s large cities to start the year?

Travel is being restricted from China, with some US airlines cutting capacity into February, following the outbreak of the coronavirus in the city of Wuhan at the end of December 2019.

The CDC has issued a travel advisory on the entire Chinese mainland. Companies are also deciding not to send their executives to the country at this time.

What kind of impact can this all have on the Chinese economy?

If China slows, could it drag down the global economy?

What Should Investors Do?

While the global stock markets remain jittery, the major big cap indexes such as the S&P 500 and the NASDAQ 100 are still trading at or near new all-time highs.

Is this investor complacency?

It might be time for investors to look beyond the hot tech names for buying opportunities in other areas.

5 Stocks to Keep on Your Short List

1.       KeyCorp (KEY - Free Report) is a regional bank that has fallen 5.8% in 2020. It’s trading with a forward P/E of just 10 and pays a dividend yielding 3.9%.

2.       Innovative Industrial Properties (IIPR - Free Report) is a REIT that invests in properties which it leases out to licensed medical marijuana growers. Shares have gotten hot despite the coronavirus jitters, adding 25% year-to-date. They yield 4.7%.

3.       Boot Barn (BOOT - Free Report) is one of the hottest retailers in the United States with sterling same-comparable store sales. Shares have come off the highs, down 4% year-to-date. Is this a buying opportunity?

4.       Exxon (XOM - Free Report) is trading near 52-week lows. Fossil fuel companies are out of favor and it shows in these shares. Exxon is yielding its highest dividend in decades, coming in at 5.25%.

5.       Macerich (MAC - Free Report) is a REIT which owns experience-related shopping malls in the United States. Shares are trading near new 52-week lows yet they’re yielding 12.5%. It’s currently a Zacks Rank #4 (Sell) as it’s just about to report earnings. Be sure to check back in on it after earnings when the analyst estimate changes will be coming in which will impact the Rank.

What else should you know about the global economy in 2020?

Listen to this week’s podcast to find out.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>