Coronavirus outbreak

Recently due to Coronavirus outbreak for the past month, There are many panic selling in the financial markets shed in terms of points and percentage.

1) STI - High 3285 Low 3112 = 173 points correction (5.26%)
2) Shanghai Composite Index - High 3127 Low 2685 = 442 points correction, Epicenter of Wuhan Coronavirus Outbreak (14.13%)
3) Hang Seng Index - High 29149 Low 26145 = 3004 points correction (10.30%)
4) Dow Jone Composite Index - High 29373 Low 28177 = 1196 points correction (4.07%) 


SARs outbreak in Nov 2002 

1) STI - High 1485 Low 1205 = 280 points correction (18.85%)
2) Shanghai Composite Index - High 1573 Low 1311 = 262 points correction, Epicenter of Guangdong Province SARs Outbreak (16.65%)
3) Hang Seng Index - High 10246 Low 8331 = 1915 points correction (18.69%)
4) Dow Jone Composite Index - High 9043 Low 7416 = 1627 points correction (17.99%)

How do we assess the severity and impact by comparing SARs and Coronavirus?

Why do i think that the outbreak of Coronavirus is a short lived event which will likely end and see an improvement by end of April 2020. .

Firstly we observed the stock market indicator comparing outbreak of SARs and Coronavirus, 

STI being the orderly and true litmus indicator of world Financial Markets, stock market historical data is analyse between the SARs and Coronavirus outbreak the STI drop 280 (18.85%) during year 2002 SARs outbreak as compared to STI drop 173 (5.26%) points during Coronavirus outbreak, financial markets is always a forward indicator and not lagging indicator where market participants anticipate that Coronavirus would be a short lived event.

STI Historical Chart

Coronavirus outbreak - STI Chart

.
SARs outbreak - STI Chart

https://sg.news.yahoo.com/asian-markets-rebound-hopes-limited-virus-impact-042422742.html

Secondly we observe and analyze the lethality and mortality rate where you can find the information source on the link below.

The Lethality and mortality rate of SARs is computed at 9.65% with 8069 infected case and numbers of death is 779 as compared to Coronavirus at current statistics indicate  75698 infected case and numbers of death is 2124 is computed at 2.81%.

https://thewuhanvirus.com/?fbclid=IwAR0s9xEKZb358GD4hRwsuO2_gyZjnr0VQwX9BCnjjWP8GnbUhmyWML_dXE0


Thirdly as illustrated by President Trump's speech on why Coronavirus will go away in April, where medical professional experts who view Coronavirus is a coomon cold or Flu bug which tend to be associated with seasonal factor and most Virus would not be able to withstand the warm and heated temperature to survive in a well ventilated and open area, hence not easily transmitted unless there is a very close proximity human to human interaction. 

https://www.factcheck.org/2020/02/will-the-new-coronavirus-go-away-in-april/

Fourth China has undertaken drastic measure on the containment  by locking down its province effectively restricting all movement by air, land and sea, for its population of 50 million residents, urge residents to stay at home quarantine themselves for safety purpose. 

https://www.channelnewsasia.com/news/commentary/china-wuhan-coronavirus-lockdown-cities-working-quarantine-effe-12400400

Fifth vaccine are developed and approved to use for treatment and it should see more recovery cases happening.

https://www.pharmaceutical-technology.com/news/china-approves-favilavir-covid-19/?fbclid=IwAR1af34TLH8-21883qT3ktQppYQlzyy6cVyY5BSv_wjt_9f3kzhyj8amM-o

https://www.straitstimes.com/asia/east-asia/coronavirus-china-asks-recovered-patients-to-donate-blood-for-plasma-treatment?fbclid=IwAR0UjgssAyYxiFeQql_XJ1kNRkd98pF9Irqx2Y1wVKBUOrC-5X-g9Zf9DPA

I feel compelling to write about the word "Panic".

Panic can be define as 

1) sudden uncontrollable fear or anxiety, often causing wildly unthinking behaviour.
2) a state of widespread financial alarm provoking hasty action..
3) a frenzied hurry to do something.

There are panic buying of grocery items like Toilet paper, Maggie Mee, Rice, Mask, Hand Sanitizers and condoms in Singapore an unusual panic behaviour exhibited when Singapore raised crisis alert to DORSCON Orange alert. 

https://www.moh.gov.sg/news-highlights/details/risk-assessment-raised-to-dorscon-orange.

Usually when there is a crisis equals to opportunity happened in the financial markets where Coronavirus caused a selloff in the stock markets. I understand the panic short selling behaviour of the market participants react due to fear of a sharp selloff which triggers a technical recession when stock indices plunge more than 20% and the global economies enter into a prolong recession. 

Due to Coronavirus indutries, many industries like tourism, transportation and retail food and beverage establishment are badly affected and dwindling sales volume which forced people to stay indoors to avoid getting infected with Coronavirus.

Lastly, I would like to acknowledge the sacrifice of the healthcare professionals made with their lives on edge. 

i wish everyone to stay calm and dont panic, panic does not help with the situation from improving. stay Safe and observant to take opportunity when it comes for bargain hunting.