Coronavirus (COVID -19)
The COVID-19 pandemic, and the global response to it, has become a serious threat not only to global health but to the global economy and financial markets. The world has never seen an event quite like this as it is unlike previous market crashes. The coronavirus pandemic has quickly evolved from a health crisis to a financial one, shuttering businesses, upending entire industries, confining millions of people to their homes and sending financial markets reeling. The tools of statistical analysis and machine learning, powerful as they are, can’t adequately assess what the world is experiencing.
Investors have naturally been concerned as stock markets around the world suffered trillions of US dollar losses in March 2020. The coronavirus market crash wiped out no less than 5 trillion US dollars in share markets value over a week, and with the virus quickly spreading to other countries, investors’ fears for their stocks is logically increasing. The markets continue to be hampered by uncertainty regarding the depth and duration of the economic and social shocks associated with the self-imposed shutdown of the global economy and embrace of social distancing to mitigate the spread of the coronavirus. The graph below depicts the various market crashes.