Here’s What Investors Should Do As Coronavirus Roils Stock Markets

Coronavirus outbreak has affected the stock market terribly and created havoc around the world. Economic uncertainty is elevated due to the unknown impact of coronavirus. Stock markets have fallen in recent weeks and it created a great opportunity for long-term investors. Investors who were brave enough to invest during times of vulnerability have consistently been rewarded after some time.

FTSE 100 index, the share index of 100 companies closes in green but has the worst week since 2012. It is now down nearly 30% from its 2020 high. Likewise, S&P and Dow Jones Industrial plunge 10%.

This is the worst time in the stock index in more than 32 years. The blue-chip index is now trading at bargain valuation and is offering a huge dividend yield. It is a great opportunity for investors who are willing to invest in the long-term.

Coronavirus has badly affected the stock market. All types of businesses are affected in some way or another. COVID-19 cases are increasing day by day around the world. In the United States, coronavirus cases jump to 2800 and there are chances that the numbers are going to increase in the next few weeks.

With time more businesses will close and people will be more afraid of a novel virus as there is no vaccine available for this. The stock market will also plummet. Stock market falls have historically been very good opportunities to get great returns. If your brain is telling you to stay away from is an indicator that now is one of those times to buy.

History also suggests that if the stock market crashes for some time it will bring more opportunities for long-term investors because higher the risk higher the return. Past data also showed that the global equity markets have always recovered from short-time obstacles.

Coronavirus pandemic might persist for a longer time. Perhaps a few months or next year too which suggests there are chances that stocks market will also plunge. Major stock indexes FTSE 100 and S&P 500 could potentially fall 5% to 10%. Stocks that look cheap now may become cheaper.

The US has banned travel from Europe, UK, and Ireland. The travel, sport, and entertainment industries are under lockdown to prevent the spread of the virus. People all around the world are quarantined and limited social gatherings to prevent exposure. Coronavirus has infected 157,478 people around the globe and the death toll reached 5,845.