Coronavirus crash: Economists try to make sense of dramatic stock market plunge

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The Dow plunged 1,191 points, 4.4 per cent, on Thursday, marking the worst one-day drop in the index’s history. Economists say those numbers are troubling, but past health crises have been followed by rapid market recoveries

TORONTO -- In the middle of a disastrous week for North American stock markets, U.S. President Donald Trump held a press conference Wednesday evening in hopes of minimizing fears about the novel coronavirus outbreak.

The dramatic fallout means that North American markets are now on track for one of their worst weeks since the 2008 recession. The sell-out is largely driven by new fears that the COVID-19 outbreak could become a pandemic capable of causing widespread quarantines and shutting down industries worldwide.

“If it goes another 10-per-cent down -- 20 per cent in total - now we’re into what’s called a bear market. And this is all being driven, not by prime economic news, if you will, but the fear of the coronavirus.” But Moshe Lander, an economics professor at Concordia University, cautioned against such comparisons. Lander pointed out that, in the case of SARS, the virus was predominantly spread from patients showing clear symptoms. COVID-19 may spread more stealthily because many infected patients are asymptomatic.“It wasn’t the same because the role of China within the world economy was much, much less and the way that the disease worked … it was a slightly different disease as well,” Lander said.

 

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God softly talked to us, now his voice is getting louder and louder, time to listen to him, not disobey him

Like the market is all that matters. I wonder how the for-profit healthcare industry is going to faire in the US after it spreads? It will require a bailout by taxpayers to survive. Healthcare for-profit was a really really Bad idea.

If your biggest fear about a global virus is your stock dividends... I hope you catch it... sorry, not sorry

Media and fear mongering?

Thanks a lot, China

Simple Markets don't like uncertainty! Such as, is Canada ready for when the virus actually hits here? No news outlet in Canada has even dived into see if the Liberal Gov't is even prepared! Which I would say their not.

FEARMONGERS

Well major countries are stalled with this virus and may just get worse.

It was probably so high from hack programs now it normal.

So where did this virus come from again? Muddy the waters with a few different sources (bat, snake, pangolin, rat etc).. probably came from a lab.

Not rocket science - Trump made a speech

Imagine New York City under quarantine. Can't? The algorithm can. Hence the market drop. It's just getting ready

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