Former Goldman Sachs CEO Lloyd Blankfein took to Twitter on Monday to calm investors after the Dow plunged over 2,000 points as the coronavirus continues to create global panic with the number of new cases on the rise.
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He predicts that the market will see a "quick recovery" once the coronavirus threat is under control. He stressed that the economy is strong, banks are well-capitalized and that the United States' financial system is "not too leveraged." Blankfein also said he believes the market will avoid the systemic damage of the 2008 financial crisis.
The coronavirus has infected at least 110,000 people and killed nearly 3,900 people worldwide.
Blankfein, who helmed Goldman as CEO for 12 years, offered his advice as the Dow, S&P and Nasdaq Composite registered one of the worst selloffs in history falling over 7 percent apiece. The selling followed a week of extreme volatility and as oil prices plunged over 30 percent as Saudi Arabia and Russia engaged in a price war.
|I:DJI||DOW JONES AVERAGES||21636.78||-915.39||-4.06%|
|I:COMP||NASDAQ COMPOSITE INDEX||7502.377567||-295.16||-3.79%|