COVID-19’s Impact on the Stock Market
FINACIAL ADVISOR THERESA M HAYES DISCUSSES THE IMPACT OF CORONAVIRUS ON THE STOCK MARKET
The stock market has fluctuated due to growing concerns of COVID-19.
“Since the outbreak, stocks have definitely fallen more than 20% from it’s peak,” says Edward Jones financial Advisor, Theresa Hayes. “Stocks were at record high’s less than one month ago.”
However, the coronavirus impact on the stock market is much different than the 2008 housing crisis.
“This time the financial and the banking system is on firm footing. It’s likely that there will be sharp declines in the GDP in the coming months,” says Hayes. “However, given the economic foundation coming into this we think the recovery and economic activity investments in the stock market can be faster than normal. The downturn will be steep, but temporary.”
Surprisingly, this may be one of the best times to buy stock.
“Fluctuation is not loss. History shows us that one of the best times to be opportunistic are when it feels the toughest to do so. Right now many stocks are at their best value in more than a decade,” says Hayes.