Coronavirus dangerous to the world stock market

Coronavirus crash wipes $5 trillion off world stocks

Coronavirus dangerous to the world stock market

Is the global economy affected?

Here is the answer:
The stock market is under God’s protection. coronavirus spreads all over the world, causing investors to fear, and the S&P 500 has decreased. On Thursday, last week, by 8%, the reason for this is the fear of investors that the virus will spread around the world, which will negatively affect companies.

There is no doubt that the virus will negatively affect the buying and selling operations of many companies, as this is what drives investors to investigate stocks. COVID-19  ( centers for disease control ) has also demonstrated that the virus is not just a temporary passing wind. Therefore, this is in the interest of some investors who make the purchase during the decline in shares when companies make the sale.

Apple

During the past 12 days, the shares of this giant company decreased by about 11%, which leads to producing opportunities for investors who want to purchase at great prices, as Apple now has a price ratio of less than 25 in just one week. The ratio of price to profits is 22, which is an entry point that attracts any investor.

Apple's business services also saw revenue rise 16% in late 2019, which holds a third of Apple's earnings.

The company's wearable business, part of Apple's wearable devices and home sector, and accessories are growing at a fast speed. The total sector grew by 37% year-on-year in early 2020 for Apple, and revenue from wearable devices, in particular, increased by 44%.

Also, the iPhone sector boomed in butter and bread for growth, as iPhone revenue increased 8% year-on-year during the two and a half months of the current fiscal year.

Apple is also concerned that revenue from the second quarter of this fiscal year will be missed due to slow supplier production in China and store closures due to the spread of the Coronavirus. However, the company's management stated in a statement that it is important to modernize the business, but that is because customers demand through different categories of services and strong products outside the country. Meanwhile, it is believed that the challenges were only temporary in the markets.

Walt Disney

Disney stocks are deeply affected by concerns about how the coronavirus might affect its visits to theme parks. Disney closed amusement parks in China last month to help reduce the spread of the disease. Also, going to parks in the United States is likely to be affected by a disadvantage.

But investors should keep in mind that Disney is a vast organization of parties, with operations that go beyond theme parks. Walt Disney Studios also owns movies, runs TV networks like ABC and ESPN, and has TV broadcasts like Disney, Hulu +, and more.

The administration also expects a slight negative impact on operating income during the second quarter of the fiscal year due to the closure of parks in China. It is estimated at $ 175 million, as total operating income in the first quarter of the fiscal year 2020 was $ 4 billion.

Time of purchase?

If the Coronavirus is affected and not spread, this could be an amazing starting point for big companies like Walt Disney and Apple.

Certainly, stocks don't need to attract investors today, as they could be at the bottom tomorrow. Stocks can continue to decline. But it is not possible to know when the market worries will subside and when they will start buying high-quality assets such as Disney and Apple. Investors are ready to buy some of the shares of these great companies at reasonable prices and wait for a long time.

Real Investment Advice also published a comprehensive report on this topic. You can see it.
Panic due to the spread of the virus in the world. And it affects the global markets. The Wall Street newspaper gathered news that affects investors and the economy in an article entitled Stocks Suffer Biggest Weekly Losses Since 2008.

Will coronavirus lead to a global recession?

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— IGSquawk (@IGSquawk) February 28, 2020

As Charlie Bilello said Founder and CEO of Compound Capital Advisors. Via his account on Twitter.

The S&P 500 Low Volatility ETF was down 11.8% this week, its worst week ever by a wide margin (inception: 2011).

Notably, it was actually down more than the broad S&P 500 ETF $SPY (-11.2%).$SPLV pic.twitter.com/8lo4A3lIVG

— Charlie Bilello (@charliebilello) February 28, 2020

A sharp drop in the S&P 500