On December 30th, 2019, a 34-year old doctor in China, Li Wenliang, wrote his colleagues on the website Weibo that he had found a new virus infection that was very contagious. He warned in a chat group with some of his colleagues to wear protective clothing to avoid infection.
He had noticed seven cases of a virus that he thought looked like SARS – the virus that led to a global epidemic in 2003.
Four days later, he was summoned to the Public Security Bureau where he was told to sign a letter. In the letter he was accused of “making false comments” that had “severely disturbed the social order”. Some days later it was reported he died of a virus infection. Many say he was killed by the Chinese police.
Apparently, the Chinese did not want the world to know about this new virus before it had spread and infected the world. China protected its two biggest cities, Beijing and Shanghai, but allowed Chinese citizens to fly out of the country to other countries. What was the goal and motive?
In mid-January 2020, the virus became a major concern in the media. We did research in the foreign press, not U.S. sources, and we found some revealing news. The official story circulating within the U.S. was that the virus came from the live food market in Wuhan. That was a diversion to distract from the real source. Here is what we wrote in January 2020:
Excerpt from our Wellington Letter Special Bulletin January 26th, 2020:
“The coronavirus sickness is advancing strongly. Macau’s government says casinos may close if the coronavirus outbreak worsens. That would be very negative for the gaming companies, especially the ones that rely primarily on Macau for most of the profits. The number of deaths keeps rising.”
It was obvious that China’s government was hiding the true effects of this new disease. The origin was in the city of Wuhan, where a lab was established in 2018 to investigate some deadly pathogens, such as the SARS virus.
According to the Hindustan Times, “the lab was built precisely to look into dangerous pathogens like the novel Coronavirus, conduct research on them and find a cure for them.” The most dangerous pathogens are classified as BSL-4.
We went on to explain the significance of this in that same Wellington Letter,
“A ‘BSL-4’ lab like this one researches the most dangerous pathogens and have to follow the maximum safety or ‘bio-containment’ levels.
Could the lab also have had the mission to weaponize such a virus and this is the result of a test gone haywire? Or were they testing the effect on the population and now have trouble controlling the outbreak?
We believe the numbers of afflicted from China is intentionally kept low. Twelve cities are being quarantined now, double the number from yesterday. That’s 35 million people. Imagine that happening in the U.S. with people is Los Angeles and NYC not allowed to leave their cities!
Unless there is some unexpected and improbable good news the next days, such as a cure, the selling could really pickup starting Monday morning and increasing next week because of the potential economic impact. The stock market has been priced to perfection. Any surprise now would be a shock to the bullish money managers.
Some short positions or inverse ETFs may payoff big. We would do it when a selloff on Monday confirms the weakness. We are expecting mounting bad news, triggering an urgency to raise cash.
Vulnerable sectors for the near term: travel, hotels, casinos, autos.
TO DO: In addition to the sectors mentioned above, we add to the list vulnerable areas for investors to short sell: oil and stocks of firms working in the energy sector, especially oil service.
The above should protect you, and even give experienced active investors an opportunity to make some nice profits. Even if a vaccine can be developed over the next weeks, it will be too late to stop the rush to safety in the investment markets.The global economies will take a big hit, led by corporate sales and earnings. The primary focus of money managers now will be SAFETY.
What this all means: good opportunities for short sellers.”
The above was from our Wellington Letter Special Bulletin of last year, January 2020 (Click this link to get your Free Copy today).
As we know now in May 2021, the above was right on target. A stock market crash started on February 24, 2020 in the U.S.
The prior day, Sunday, February 23, 2020 we issued another Special Bulletin titled “The Financial Market Storm Begins,” warning that a sharp market plunge was immediately ahead. Our indicators had detected increasingly massive selling ahead of the plunge. Obviously, someone knew that the virus news was going to be released.
The S&P 500 plunged 37% in 27 trading days, making it the quickest and most severe market crash in U.S. history.
A few days ago, May 25 2021, the Daily Mail of the UK wrote this:
“US liberal media's Covid U-turn: A year after TRASHING theory that COVID originated from a Wuhan lab because Trump supported the suggestion - America's woke mainstream news outlets suddenly start asking if it's true!”
- The first reported fatality from COVID-19 was in Wuhan, China, on January 11, 2020
- By January 21 the virus was in the U.S.; a week later The Washington Times speculated about a 'lab leak'
- The suggestion, picked up by Trump and embraced by China hawks, was ridiculed by the left-wing media
- A year later, a growing acceptance of the possibility of a 'lab leak' has formed - ignoring past skepticism
- Dr Anthony Fauci, the nation's top public health official, now says that he believes it is possible.”
The liberal media have finally conceded that COVID-19 may have originated in a Wuhan laboratory - after a year spent ridiculing the suggestion.”
Our January 26, 2020 Wellington Letter reported the origin of the virus from the Wuhan Lab and other information that has just been emerging now, over one year later.
O:ur timely warning about 16 months ago enabled investors to be prepared for the record shattering crash that started in late February 2020. That is information is powerful in the markets.
Now we know that the virus was made to be very infectious in the Wuhan BioLab. That’s exactly what we wrote one year ago, based on articles in the foreign press which is not under the control of the U.S. media. It is a process known as “gain of function.”
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