Low Beta ETFs To Consider In An Uncertain Market
Zacks Investment Research | Mar 03, 2020 11:10PM ET
The fast spreading coronavirus has sent the world stock market into a tailspin, eventually leading to bloodbath. This is especially true as the deadly virus has sparked concerns about its long-term economic impact on trade, ports, supply chains and consumer confidence. In particular, a growing number of companies have warned that the epidemic will prevent them from meeting sales or profit targets for the first three months of the year.
Per International Monetary Fund, the outbreak could reduce global economic growth by 0.1% this year. Goldman now projects that the U.S. economy will grow just 1.2% in the first quarter, down from 2.1% in the fourth quarter and 2.3% in full-year 2019. Meanwhile, the Organization for Economic Cooperation and Development warned that global growth could be cut in half if the outbreak continues to spread.
In order to insulate the economy from the epidemic, the Federal Reserve cut interest rates by half-percentage point to the range of 1.00-1.25%. This represents the first emergency rate cut and the biggest one-time cut since 2008. However, the move failed to reassure markets as the news was perhaps a sign that the Fed is concerned about the economy (read: Zacks Investment Research
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