When the world experienced severe market volatility during February and March due to the spread of the coronavirus, financial experts wondered how long it would take for economies to rebound. Some parts of the world have rebounded better than others, but there could be lasting impacts on the financial crisis. Until a vaccine or viable treatment option is developed to contain the virus or boost the recovery rate, we can expect market volatility to be present. As coronavirus cases begin surging again, we’ve taken a look at how the stock market has been impacted.
Expect Lower Levels Of Market Volatility
The more information we have about the coronavirus, the less volatility we can expect in certain markets. It’s becoming more clear that countries are confident in their ability to limit the spread of the virus without shutting down the economy completely. This alone will help reduce market volatility since economies can survive with the virus, even though it may take several months or years for them to thrive again. Anything is possible with the surge of cases, but most experts believe volatility will not reach the levels it was previously in March.
Surging Coronavirus Cases Brings Uncertainty
Companies worldwide have levels of uncertainty as the number of coronavirus cases continue to surge again. However, giant corporations like Amazon, Microsoft and Apple continue to be leaders and have rebounded well from the initial volatility and have become more stable. Companies like Facebook and Google have more uncertainty than others as businesses continue pulling back on advertisement spending. Those companies aren’t hurting by any means, but their levels of growth have failed to reach previous levels up to this point. As the uncertainty from the surge of coronavirus cases continues, investors have to watch closely how companies react.
The Stock Market Is As Unpredictable As Ever Before
With so many variables to consider regarding the coronavirus pandemic, the stock market is more unpredictable than it has ever been. Having a solid foundation of financial knowledge is great to fall back on, but investing in the right areas requires daily evaluations and potentially adjusting your risk tolerance. No one can accurately predict what the stock market will do in the coming months or years, but if the market’s reaction to the latest surge of coronavirus cases is any indication, market volatility may not reach peak levels like we saw earlier this year.
Stock Investing Info is watching the market reactions to the coronavirus pandemic daily. The financial crisis the world has experienced in recent months is unprecedented. But while we may still be dealing with the health ramifications of the coronavirus, the stock market does not appear to be impacted as much as time goes on. Major companies are still holding on, and there are still some investment opportunities present in smaller companies as well depending on the industry. We are here to help you make as much sense as possible of the current coronavirus situation as it relates to your investment portfolio, so contact us at any time for advice.