CoronaVirus Side Effects

Don M.

Don M.

SF VIP
Location
central Missouri
As this virus continues to expand, globally, there may well be a huge "side effect", economically. Millions of people in China, and now, Japan, and even Italy, are being told to stay home, and businesses are shutting down due to lack of employees in manufacturing, and customers in retail and service related businesses. The global stock markets are already sliding downwards due to all the uncertainty. The longer this drags on, and the longer it takes to find a treatment, the more the economy is going to slide. Given the amount of products made in China, it won't be long before there are shortages in many consumer items. This has many similar implications, IMO, to the "housing bubble" which brought the stock markets down substantially a few years ago.
 

My DIL was telling me that one of her students who has family in China (who they visited in August) are feeling the effects. His parents own a Chinese restaurant and business is down. In fact, I've heard a couple of people say they won't eat at a Chinese restaurant again. But child's mother said there's no virus reported where their family lives in China. Here's an article Schwab emailed to it's clients. The general tone of the article is reassuring but also admits we really can't know the affects of this outbreak compared to other virus outbreaks.
https://www.schwab.com/resource-center/insights/content/will-virus-outbreak-lead-to-market-breakdown
 

Not in the same thinking as above but I wonder about the long term effects of the disease.

What comes to mind is something similar to those who had chicken pox years later developing shingles.

Could those who survived coronavirus develop something else down the road. They really do not know a lot about this at this point.
 
Don M. said:
The stock market was down quite a bit Friday, and Today it is dropping like a rock. I won't be surprised if the markets take at least a 10% "correction" before this begins to stabilize. On the plus side, gold and silver are rising nicely.
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I'm monitoring...The Dow has dropped by 1,001 points and may still be heading south. Nasdaq is down almost 360 points. And the New York Stock Exchange is down 425 points. I'll be buying some ETF and mutual fund shares at or before 3:30.
 
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The scariest thing about Coronavirus is that now they're saying that people are getting the virus even if they have not been to China or been exposed to infected people. I have a gut feeling that the virus is spreading much faster and they're not telling us the truth to avoid panic. I'm sure glad I'm a semi-recluse and not having lots of contact with people, like at work or other crowded places.
 
A big drop in the stock market can present buying opportunities. Age as in my case makes a difference in putting money at risk.

The concern for health doesn't seem to be on the governments mind. I haven't seen a public service announcement describing the symptoms and how this virus is different from a common cold. Maybe it doesn't that should be IMO something the public should know without having to Google it.
 
oldmontana said:
I am not worried about my stock portfolio . I am worried about the number of people dying from corona virus.
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OM...having been in public health as a Disease Intervention Specialist for the state for 14 years and various capacities before that, I'm always concerned about disease outbreaks and their aftermaths. Even though it was my job (and the job of our team) to stop the spread of STD infections, we were a special breed who succeeded at our work because we truly cared about our patients, some of whom died off from the HIV virus. Several very intelligent college graduates did not make the cut because they didn't have what it took to connect with people who were scared, some misinformed and in need of non-judgemental counseling. I'm guessing you haven't seen my other posts concerning the matter where I remarked that people need to take this more seriously (eg: protect themselves and loved ones).

RadishRose said:
Pardon me OM, but I believe Diva is more concerned about dying people....she was just responding to the OP, which is about economic side effects.
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Thank you Rose for setting the record straight and you're absolutely right...the OP's post was about the virus' effect on businesses and the markets and that was what I responded to.
 
Typically the old saying on stocks of "buy low, sell high" should be avoided here until someone gets a grip on this virus. It is unclear of what, where and how it is worldwide. Keep in mind the number of affected is not included in all countries. Countries surrounding China are probably in deep trouble but we don't hear about the total picture in that region.
 
fmdog44 said:
Typically the old saying on stocks of "buy low, sell high" should be avoided here until someone gets a grip on this virus. It is unclear of what, where and how it is worldwide. Keep in mind the number of affected is not included in all countries. Countries surrounding China are probably in deep trouble but we don't hear about the total picture in that region.
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No one ever knows what lows is ..we thought low was when the market fell 2000 points in 2008 ..who knew it had 4000 more to go ...

an object in motion stays in motion until it hits something ....there is a reason they say the trend is your friend ....the saying buy low and sell high has lost more money for investors than any other mantra ....the biggest money maker is buy high and sell higher ...you stand a far better chance making money in an up market than a falling one
 
fmdog44 said:
Typically the old saying on stocks of "buy low, sell high" should be avoided here until someone gets a grip on this virus. It is unclear of what, where and how it is worldwide. Keep in mind the number of affected is not included in all countries. Countries surrounding China are probably in deep trouble but we don't hear about the total picture in that region.
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Its not over till its over....and I do not think its over.
 
Watching the video that @Gary O' posted above is a chilling experience. If this virus hits the rest of the world in a big way? All bets will be off for financial markets.

We can only imagine how deeply current (and future) Chinese quarantines are going to affect the supply chain. Only that they will.
 
mathjak107 said:
No one ever knows what lows is ..we thought low was when the market fell 2000 points in 2008 ..who knew it had 4000 more to go ...

an object in motion stays in motion until it hits something ....there is a reason they say the trend is your friend ....the saying buy low and sell high has lost more money for investors than any other mantra ....the biggest money maker is buy high and sell higher ...you stand a far better chance making money in an up market than a falling one
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You missed the point of my post which was the potential of the virus and the unknown of the virus. You think buying high is better than buying low. I would like to sell you my home & truck. Also, you forget "never chase a winner".
Too bad you can't prove some of the outlandish claims you make.
 
StarSong said:
Watching the video that @Gary O' posted above is a chilling experience. If this virus hits the rest of the world in a big way? All bets will be off for financial markets.

We can only imagine how deeply current (and future) Chinese quarantines are going to affect the supply chain. Only that they will.
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The supply change is already being effected.
 

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