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Dow Plummets on Coronavirus Fears

Newser — Newser Editors

It's shaping up to be a brutal day on the stock market thanks to rising coronavirus fears. The Dow plunged more than 900 points in the opening minutes on Monday, before recovering a bit.

At 9:40am, the index was down 778 points, or 2.6%. That follows similar drops in markets in Asia and Europe, reports the Wall Street Journal.

For example, the Stoxx Europe 600 fell 3.5%, its biggest decline in four years. And in Italy, which is coping with its own fast-spreading outbreak, the main index fell 4.7%.

So what should investors do? The advice from someone who's done pretty well over the years is to ignore the panicked headlines.

"The real question is: Has the 10-year or 20-year outlook for American businesses changed in the last 24 or 48 hours?" Warren Buffett said on CNBC, in comments MarketWatch is labeling its "call of the day." He added: "You’ll notice many of the businesses we partially own, American Express, Coca-Cola—those are businesses and you don’t buy or sell your business based on today’s headlines. If it gives you a chance to buy something you like and you can buy it even cheaper then it’s your good luck."

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