13 Feb 2020
Coronavirus outbreak: What it means for markets
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Clients are asking questions about the potential impact on global economic growth and financial markets.
You could expect to see a sizable decline in consumer spending and manufacturing activity in China and reduced tourism, luxury goods spending and commodities purchasing but it has not materially impacted financial markets.
Why because viral outbreaks similar to this have occurred in the past with minimal impact on financial markets.
Click for chart.
Note however, if the situation was much worse, for instance if the Coronavirus had a 100% death rate then there would be global panic and financial markets would be in chaos.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.
