With the deadly coronavirus affecting more people daily and spreading outwards from China, the stock market is currently experiencing some volatility as a result. Any time there is a global viral outbreak, the market tends to react negatively at the beginning due to the potential economic consequences that stem from the horrible affects these viruses have on the global population.
With that being said, I thought it would be beneficial to provide some information on how the markets have done when the world was faced with previous epidemics. According to research done by Market Watch and Dow Jones Market Data, for the 6 months after the first reported case of SARS, the S&P 500 posted a gain of 14.59%. Like most systemic risks, there is a shorter-term decline followed by the market bouncing back or evening out. For the full article by Market Watch, please click HERE.
