Coronavirus just sent the Dow crashing 1,100 points and it could get worse(Source Yahoo Finance)

The disturbing coronavirus driven selloff across global stock markets this week may be the tip of the iceberg for one simple reason.

Stocks have yet to price in a mild — or somewhat bruising — recession in the U.S. as coronavirus infection cases pile up and bring consumer activity and businesses to a standstill. Up until now, equity strategists Yahoo Finance have talked with, say the stock market’s six-day drubbing largely reflects de-leveraging by hedge funds and speculators on momentum names (see Microsoft, Apple, etc.).

That suggests there could be another shoe to drop in stocks soon as  more strategists severely slash S&P 500 earnings growth targets as Goldman Sachs did Thursday; and  investors digest what is likely to be terrible global macroeconomic data in the weeks and months to come.