Even if coronavirus turns out to be as contagious and deadly as really bad contagious diseases like Ebola, it will most likely be successfully curbed. The Ebola outbreak a few years ago was effectively kept in check, and so were the Severe Acute Respiratory Syndrome (SARS) outbreak of 2003-04, and the Middle East Respiratory Syndrome (MERS) outbreak early last decade.
“All three outbreaks were contained before they could have a significant impact on the global economy or financial markets around the world,” says Ed Yardeni, of Yardeni Research. “We expect the same outcome with the current outbreak.”
Whenever there’s a new virus outbreak, people are egged on by the media echo chamber, which latches on to the story and repeats it ad nauseum, drilling fear and concern into the minds of investors and the general public alike. The same thing happens on social media, where rumors can spread unchecked.
This amplifies the perception of risk, but not the risk itself. At some point and perhaps soon, the media and Twitter will move on to the next story of the day, and coronavirus fears will ease.
So far, coronavirus has claimed fewer than 100 lives. SARS, which also sparked widespread panic and investor selling, claimed hundreds of lives, and fewer than 10,000 cases were reported.
In contrast, other flu viruses in circulation in the U.S. last year took over 34,000 lives, and they are taking a similar toll this year. Yet unlike coronavirus and SARS, these flu viruses have had zero impact on the stock market. This suggests the current hysteria developing about coronavirus is irrational.
https://www.marketwatch.com/story/5-reasons-coronavirus-fears-are-overblown-and-14-stocks-to-buy-now-2020-01-28
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