Coronavirus: Investors Should Hold Their Nerve

Looking at nine major outbreaks since 1998, there is little evidence linking global epidemics with long-term investment fundamentals

Carolyn Szaflik 3 February, 2020 | 10:39AM

Coronavirus

Public health outbreaks and epidemics like the recent coronavirus can quickly scare investors and, eventually, affect economies and businesses. World stock markets have tumbled since the first death was announced on January 11, with Chinese equities more than 10% lower since then.

The recent coronavirus outbreak has shut down airports, halted trade, and led to the rapid construction of new hospitals in China. The effects of the outbreak may push China's economy into a period of slower growth, with stocks trading lower as investors seek protection.  

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Carolyn Szaflik  Carolyn is a portfolio specialist at Morningstar Investment Management

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