Coronavirus causing market volatility


JOPLIN, Mo. — The coronavirus has infected thousands and killed hundreds.

But that’s not all, it’s also infected the travel industry, sporting events and the stock markets.

If you’ve looked at stock market trends, you’ve seen a lot of red, which means the values are dropping.

Dr. Brian Nichols, MSSU Professor of Finance, said, “You know fear and uncertainty is what causes fluctuations in the market.”

Thanks exactly what’s happened to financial markets across the world, thanks to the coronavirus.

There’s a circuit breaker in every house, turns out there’s one in the financial market as well and it’s been triggered twice this week.

Any time the S and P Index drops by 7%, the financial circuit breaker kicks in and causes the market to automatically shut down for 15 minutes.

That’s done to try and head off a market crash.

So what does that mean for investors?

“It is probably a good time to get in but it is not a good time to get out.”

Nichols says investors should make their decisions based on the long term, and that the market historically bounces back stronger than before.

“Before all that our economic activity here in the U.S. was very strong, and so I see as a short term blip still really in now will it cause a recession, it might possibly cause a recession, the economy typically shifts about six to nine months after the stock market does.”

We do want to add, there have been no confirmed cases on campus.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories