The coronavirus has spooked stock market investors as they continue to worry about the worst-case scenario for the economy and corporate profits. They picture factories and supply chains closing worldwide due to quarantines and consumers staying at home instead of working and spending. As a result, many experts believe that the market will continue to be volatile until the number of new cases slows down.
CBC News recently spoke with Sightline Senior Vice President and Investment Advisor Paul de Sousa to figure out if this truly is the most likely case. According to de Sousa, stock markets are indeed in for a wild ride until the market develops a clear understanding of how detrimental the virus outbreak will be in North America.
“People have been lulled into a false sense of complacency,” he said, warning that volatility will take over the markets for a while. “There’s always a reversion to the mean in markets,” he explained to the publication, “and now we’ve swung the pendulum dramatically in the opposite direction.”
To read the entire CBC News article featuring Paul de Sousa, click here.
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