Steve Moore: Don’t Sell Your Stocks, Folks

The coronavirus outbreak in China rattled global markets last week, before seeming to stabilize as the virus was declared a global health emergency by the World Health Organization on Friday. The death toll from the new virus rose over 300 this Sunday, and President Trump signed an order barring entry of foreign nationals who have visited China within the last two weeks.

The fear surrounding the virus and the flight to safety has led to sell-offs by investors, with the Chinese market in particular hit-hard before it closed for the Lunar New Year. The Chinese government is expected to inject $174 billion dollars into the economy on Monday to shore against sell-offs as the market reopens.

Stephen Moore joined The Cats Roundtable to assuage investor fears, reminding that the basic fundamentals of the U.S. economy remain in good favor, which is the best way Americans can ride the market turbulence.

Moore attended President Trump’s signing of the USMCA this past Wednesday, calling it a “great bipartisan achievement for America.”

With the USMCA, along with the new trade deal with China, Moore thinks we need to look beyond a temporary slump. “Fundamentally, the economy remains very strong,” he said. “I’m pretty bullish on the U.S. economy for 2020.”

He warned The Cats Roundtable and listeners against the influence of “bearish agendas” from Democratic lawmakers and candidates, such as redistribution of wealth and trillions of dollars in new spending.

“I think the market gets a little nervous when they hear this assault against wealth and assault against economic success,” he said.

But Moore is confident that momentary worries won’t have a hold on long term investments, insisting against “watching the stock market every day” when invested for the long run.

“I don’t think now is a good time to sell your stocks,” he told The Cats Roundtable, citing the increased profit for American companies. “Profits are the mother’s milk of the economy.”

With the Presidential election in 2020 quickly approaching, Trump’s promise of prioritizing the U.S. economy will be put under increasing scrutiny. Moore believes the President has delivered on his 2016 promises, and that delivery is reflected in investor’s faith in the President.

“I think the market does perceive Trump as a pretty clear favorite,” Moore said. “His policies are always designed to put America first—and that’s what he’s done.”

Listen to the interview below

The post Steve Moore: Don’t Sell Your Stocks, Folks appeared first on CATS Roundtable – Radio Show.

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