Not as bad as 2008 or 1987.

That’s what Warren Buffett said about the current coronavirus, oil shock market maelstrom.

“If you stick around long enough, you’ll see everything in markets,” Buffett said. “And it may have taken me to 89 years of age to throw this one into the experience, but the markets, if you have to be open second by second, they react to news in a big time way.”

In an interview with the Berkshire Hathaway (BRK-A, BRK-B) CEO in his Omaha headquarters on Tuesday, Buffett called the recent market shock “a one-two punch” with coronavirus and the plunge in oil prices, but indicated that the October crash of 1987 which he called a “financial panic” was worse.

As for the market collapse in the the fall of 2008, he said that was “much more scary, by far, than anything that happened yesterday [Monday of this week.]”

Market volatility has exploded in recent weeks with the spread of COVID-19. The S&P 500 (^GSPC) has plunged 19.4% from its Feb. 19 high of 3,393.52 to its March 9 low of 2,734.43, that P/E has come down sharply.

Things really crescendoed on Monday with the major indices dropping 7% in a single day. The Dow Jones Industrial Average (^DJI) fell 2,013 points or 7.8%.

Author: Andy Serwer

Source: Finance. Yahoo: Warren Buffett reacts to the stock market rout, oil crash amid the coronavirus outbreak

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