As fears mount about the impacts of Zika, Canaccord's Tony Dwyer is warning that the health crisis (compounded with Italian bank issues, a more hawkish Fed and energy price weakness) could morph into the Ebola scare that enveloped the market two years ago.
The S&P 500 slipped 1.7% off its peak once the first U.S. Ebola case was reported in September 2014, and by the time the third American case was diagnosed, the market was already down 7%.
"Obviously, no two situations are exactly alike, but this is pretty close," concluded Dwyer. "I'm not looking for anything like a 10% decline... but this could be the catalyst we've been looking for."
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