Restrictions on social gatherings and travel has affected us as individuals and community as Coronavirus is taking everyone into its grip since daily life depends on mixing up with people, going to banks, schools and shopping.
From December 2019 a new virus outbreak, officially called COVID-19 emerged out of Wuhan, China and it has spread all over the globe.
Investors fear that the outbreak will further weaken the global economy not just China but elsewhere into Europe and US.
Though I’m not an expert on International/European investments, however a common sense goes to show its impacts generally on the markets around the world.
There are now substantial fear that this may upset global supply chains with companies such as Apple calling out revenue misses and potential difficulty in getting phones to market given shutdowns in China, a manufacturing global hub.
The markets had arguably been rallying in recent weeks despite virus concerns on the assumption that the pandemic would be contained anytime soon. This had seen share market valuations become stretched which heightened the damage we have seen in the last month when investor sentiment weakened.
By triggering fear although the news websites generate traffic and thus sales in advertising at the expense of negative market confidence.
Holding investment for longer periods of time substantially improves the likelihood of a positive return, but that depends on when the pandemic curve will flatten and finally go down.