Tuesday, October 14, 2014

This Will Make The Market Rally In Five Minutes iShares Russell 2000 Index

As you may know, the Ebola virus is upon us all. The disease has caused havoc in Western Africa. There have been over 4000 deaths reported and now there are new Ebola cases popping up around the world. The only solution is to try and contain the disease in Western Africa and stop it before it spreads any further. The various governments can send aid and drugs to that region until the disease is under control and has stopped spreading.

Airlines could suspend flights to and from Western Africa as that seems to be the primary way the disease is spreading to other countries around the world. Recently, airport screenings have been increased. Passengers now have to answer several questions before getting on a plane, they also have to submit to a temperature test, but what does this really do? A flight from Africa to North America is pretty long and a passenger can develop a fever while in flight, so what does that screening really do to protect others on the plane? The answer is that all airline flights need to be suspended until this disease is stopped.

How on earth is economic growth expected to take place if fear of the Ebola virus takes hold? People will be afraid to leave their house if this disease starts spreading more frequently. Please remember, consumer spending accounts for roughly 70.0 percent of the U.S. gross domestic product (GDP). After all, the central banks have already flooded the world with cheap money just to keep the equity markets afloat over the past five years. What are the central banks going to do for an encore if fear from Ebola takes hold? The current decline in oil prices are already telling us a global slowdown has begun. If trade starts to stall out between nations this will be problematic for the entire world. What are these governments thinking by continuing to operate commercial airline flights out of Western Africa? If you want the markets to rally in five minutes simply stop the flights in and out of West Africa until this disease is stopped.

Currently, the iShares Russell 2000 Index ETF (NYSEARCA:IWM) has declined by more than 12.0 percent since July 2014. Most traders and investors view the Russell 2000 Index as a leading indicator for risk taking in the stock market. After all, the bulk of the companies in the Russell 2000 Index are small cap companies that represent small business in America.





Nick Santiago
InTheMoneyStocks.com