Coronavirus, Past Epidemics, & the Stock Market
A look at how previous epidemics impacted the stock market in the U.S. & around the world.
Provided by Eric Hagen | online at EricHagen.pro
In international news, the latest coronavirus outbreak has hit China and is also showing up in other areas around the world. To help understand what this current outbreak could mean for us in the near-term, it can be helpful to look at how other past epidemics have impacted the economy & financial markets.
Stock Market Returns Following Past Epidemics
This chart shows us what the return of the stock market was, as measured by the S&P500, both 6 months following and 12 months following previous epidemics. With the exception of HIV/AIDS in 1981 & the measles/rubeolla outbreak in 2014, the stock market was positive both 6 months & 12 months later.
This chart shows us how international markets did over the past 50 years with detail into 1-month, 3-month, & 6-month returns following past epidemics.
To summarize, epidemics historically have not overly impacted the stock market. Meaning, other factors that drive stock prices in aggregate are more important that epidemics. If you would like to discuss your personal financial & investment situation, please don’t hesitate to reach out. I can be reached at www.EricHagen.pro.
Eric Hagen | Capital Consulting Group | InvestWithCCG.com 6301 Wayzata Blvd | St. Louis Park, MN 55416 | 952-540-0153 | Eric@InvestWithCCG.com
Securities & Investment Advisory Services Offered Through NEXT Financial Group, Inc., member FINRA/SIPC. Capital Consulting Group is Not an Affiliate of NEXT Financial Group, Inc. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
