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Ali Farhad

Coronavirus

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Well first of all there is fear. Markets will price fear into the market and so an increase in those fears will see a sell off. 

Secondly, and it also has to do with fear as well, is economic slowdown. Fear results in less economic activity amongst consumers and businesses and so we see a slowdown. This will see investors put their money into safe haven assets. 

With the coronavirus we have also seen the Chinese government lock cities down. This further reduces economic activity. China is a massive exporter and so their economic decline has a massive ripple effect on other nations and this again sees a decline in data and money flowing into safe havens.

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