Coronavirus Panic To Send Economy Into Recession: ETF Picks
Zacks Investment Research | Mar 17, 2020 11:10PM ET
Given the coronavirus pandemic, market participants forecast global recession. This is especially true as the fast spreading novel coronavirus has taken a toll on economic activities worldwide, leading to suspension of professional sports games, cancelation of major events, conferences and conventions, prohibition of mass gatherings, travel bans and half-empty restaurants.
Also, the contagion has led to a bloodbath in the global stock market and put an end to the longest-ever 11-year U.S. bull market. Notably, U.S. stocks saw their worst decline since 1987 on Mar 16. The S&P 500 and Nasdaq are down more than 25% from the record highs reached on Feb 19 while the Dow Jones is down more than 28% from its Feb 12 level.
According to S&P Global (NYSE:SPGI) and a number of analysts, the coronavirus outbreak has increased the chances of a recession. Notably, Morgan Stanley (NYSE:MS) predicts global economy to slip into a recession triggered by the fast-spreading coronavirus (COVID-19) with growth dipping to 0.9% year-on-year in 2020, which will be deeper than 2001 (read: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.