Question

what are some things happening in the economy that concerns you? What is the impact of the coronavirus? Does it impact the financial market?

Answer 1

Answer-

The year 2020 is going to be one of the worst affected year in the history due to the pandemic COVID-19. The eonomies across the world has seen infections of Corona virus which led to lock downs and closure of all businesses. The closure was to control the spread of virus which affected all the sectors barring few defensive sectors such as pharmaceuticals and e-commerce. The worst affected are the countries like USA, Brazil, Europe, Russia and some emerging economies.

The economies are witnessing the contraction in the growth. This impact on growth is due to complete isolation of economies to contain the spread of virus which completely grounded the aviation sector and other manufacturing sectors. The opening of sectors to limited capacity has started some sectors where stringent measures of social distancing is being followed but the uncertainity is prevaling due to increasing infections across the world.

The financial market has been rattled severely due to the COVID-19 which has plummetted the share prices of many companies. There has been broad based selling in the stock markets and the valuations has been affected by 40-50% across many sectors. The stimulus packages has not been able to cheer the financial markets but some recovery has been seen in financial markets due to lower available prices of shares which can be seen as a buying opportunity. The economic recovery is uncertain as the situation is unprecedented leading to slow paced recovery.