One Explanation Why The Market Is Not Going Down Despite Coronavirus: PreMarket Prep Recap For Feb. 14, 2020

Bellator Asset Management Advisory Board Member Ian Winer appeared on Benzinga’s PreMarket Prep Friday, offering an explanation as to why U.S. stocks are largely not reacting to concerns around the globe of the coronavirus in China.

“As long as rates stay low and you’ve got the ability for the Fed to continue to expand valuations by propping up assets, you’re in a situation where unless you think the world is going to end, which I don’t, what’s going to happen is what always happens with these things," Winer said on the show.

"Eventually it settles down. People assume, probably correctly, that demand isn’t going away permanently. It’ll just shift. And pretty soon you’ll have every bullish person on the street saying ‘Good news, next year there will be easy comps.’ That’s why I think people aren’t reacting to this stuff.”

Co-Host Dennis Dick agreed, citing companies like Nike Inc NKE, Alibaba BABA and others whose warnings about revenue losses have been shrugged off by investors.

“They’re all getting passes on this. So that’s bullish in itself. They’re saying nervous stuff on the call, but people are like ‘Ok well they’re coming out clean on it, it’s good.’ I’ve been trying to figure out the fundamental reason why the market keeps rallying here, but maybe it is that everybody gets a pass now. If this doesn’t have a contagion effect, I could see this market significantly higher by the end of the year.”

To see the full discussion on how the market is pricing in coronavirus fears, click here.

Other Stocks Discussed On The Show

Some of the stocks also discussed include, with technical levels provided by co-host Joel Elconin:

• Tesla IncTSLA (click here)
• Pinterest IncPINS (click here)
• Canopy Growth CorpCGC (click here)
• Cronos Group IncCRON (click here)
• NVIDIA CorporationNVDA (click here)
• Royal Caribbean Cruises, LtdRCL(click here)
• Virgin Galactic Holdings IncSPCE (click here)
• Apple IncAAP(click here)
• Expedia Group IncEXPE(click here)

Featured Guests

Ian Winer,Advisory Board Member of Bellator Asset Management, Author of Ubiquitous Relativity

Guest BioIan Winer was Director of Equity Trading at Wedbush Securities. With more than 16 years of experience, he brings the sell-side and buy-side perspective to the firm’s equities team. Mr. Winer is responsible for all aspects of trading for the Equities Division including the management and supervision of all sales traders and position traders, as well as the management of capital commitment and risk controls. Prior to joining the firm, Mr. Winer was Managing Director at Nomura Securities International where he built a U.S. Cash Trading business and was responsible for risk and client facilitation. He also held Equity Trading roles at Goldman Sachs, J.P. Morgan, Salomon Smith Barney, Banc of America and Credit Suisse. Mr. Winer received his BS in International Relations from the United States Military Academy at West Point.

Ian’s full interview can be viewed at 36:00 in the video below or by clicking here.

Watch the full show or listen to the podcast below.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google Play, Soundcloud, Stitcher and Tunein.

Meet the Hosts:

Dennis Dick
Joel Elconin

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Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.