Almost Half of Investors Say Coronavirus Is Impacting Their Market Outlook

For this week’s Sentiment Survey special question, we asked AAII members if the coronavirus is impacting their outlook for the economy. A little less than half of all respondents (47%) say the coronavirus is impacting their economic outlook. A majority in this group cite that stagnant manufacturing in China related to the coronavirus will impact many companies’ supply chain systems. Additionally, many in this group expect the adverse impact to be short-lived. On the other hand, 42% of respondents state that the coronavirus is not impacting their outlook for the economy. Many in this group state that China will experience most of the negative effects related to the outbreak. Finally, 11% of respondents state that it’s too early to tell how the virus might impact the economy.

Here is a sampling of the responses: 

• “I believe the coronavirus (novel) outbreak will have a short-term effect on the world economy. Thus, it has the possibility of creating some value opportunities as investors overreact to the outbreak.”
• “If you are well diversified, it doesn’t really matter. There is always a crisis of some sort going on.”
• “I think it may impact China slightly, but to the rest of the world it will be fleeting news. I am amazed at China’s ability to build two hospitals and staff them in 10 days—WOW!”
• “Yes, it will slow production and other work in at least China for the foreseeable future. This will impact trade and supply chains for months. Remember the flu epidemic from 100 years ago.”

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