The whole world is still reeling from the devastating effects of the COVID 19 pandemic. Due to the coronavirus’ nature, it was considered necessary to shut down all activities that may encourage the virus’s spread. Therefore, the government shut down all avenues of physical interaction; educational institutions and industries were closed, commercial activities were stopped, and businesses suffered. With millions infected and several hundred thousand deaths, it is safe to say that we have a long way to go before we can recover from this economic shut down.
Impacts of the COVID-19 virus on the stock market
COVID-19 influenced several channels, including labor markets, global supply chains and consumption behavior. All of which are the main components of the global economy. After careful analysis and observations, we found that COVID-19 has a negative but a short-term impact on the global stock market. The effects of COVID-19 on stock markets have a bidirectional spill-over effect between Asia, European and American countries. The significant bidirectional spill-overs imply that a country’s economic problems might affect another country due to economic interdependence.
The stock of companies that supply essential services, or that have implemented “safe” processes, are at an all-time high. A typical example is Amazon. The COVID-19 crisis brought increased stock value to Amazon due to increased reliance on e-commerce. Apple, Clorox, PayPal, Regeron, and Nvidia are a few other examples of companies that experienced an increased stock value.
However, stocks of several other companies are losing value daily due to restrictions on operations. A typical example is the airline sector, as many shares of US-based airlines plummeted when the pandemic began. To mention a few, American Airlines Group Inc., United Airlines Holdings, and Delta Airlines are experiencing a drop in stock value. Another evidence of this virus’s effect on the stock markets is Nikkei, who trades with the Tokyo Stock Exchange. The stock values of Nikkei have been on a dropping trend since the outbreak of COVID-19.
Investing in stocks during COVID-19
Investing in stocks during the COVID-19 pandemic is a tricky affair. It is virtually impossible to escape the negative impacts of the virus at this stage, but with time, the economic effects of COVID-19 will diminish. However, Brokerlii can give you a head start to attaining profitable investments during this period.
Brokerlii is a dynamic brokerage firm with a track record of delivering high-quality services in stocks investment, business development, strategic alliances, sales, marketing, and operations. At Brokerlii, we are committed to delivering the resources that will support your chosen sector’s success. Clients trust us to provide a structured route to evaluate, plan, optimize, and grow their businesses within a sustainable framework. We proactively bring businesses together to create mutually beneficial relationships and opportunities. Let us work with you to create the relationships and drive the strategy to generate revenue and build brand recognition and value. Contact Brokerlii today to learn more.
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