Excerpt from my quoted in MarketWatch.com...
Here’s how the stock market has performed during past viral outbreaks, as epidemic locks down 3 Chinese cities
https://www.marketwatch.com/story/heres-how-the-stock-market-has-performed-during-past-viral-outbreaks-as-chinas-coronavirus-spreads-2020-01-22
By Mark DeCambre – Published: Jan 23, 2020
“…Many investors are recommending caution amid the current bout of coronavirus that was first identified late last year in Wuhan City, China, and has claimed 17 lives, with more than 500 people sickened, according to some reports. The ability of the virus to halt travel and harm consumption, particularly in Beijing, are some of the ways an outbreak could have economic implications that could wash up on U.S. shores.”
“Epidemics and pandemics do have market consequences and raise risk, and…they can be deadly,” wrote David Kotok, chairman and CIO at money manager Cumberland Advisors, in a Wednesday research note.
“External shocks can derail economic trends and abruptly alter market sentiment. Not all risk is economic policy or monetary,” he wrote.
On Thursday, the Dow Jones Industrial Average DJIA, -0.44% was set to head lower, while the S&P 500 index SPX, -0.31% and the Nasdaq Composite Index COMP, -0.20% were on track for subdued trading following slight declines on Wednesday.
Investors lately have been attuned to updates on the spread of the disease, with the first U.S. case reported Tuesday in Seattle, Wash., which dragged major U.S. equity indexes from mostly positive intraday gains midday to modest declines at Tuesday’s close.
Despite the recent malaise suffered by stocks, indexes have been only slightly lower for the week.
Full story at MarketWatch.com: https://www.marketwatch.com/story/heres-how-the-stock-market-has-performed-during-past-viral-outbreaks-as-chinas-coronavirus-spreads-2020-01-22
