Fundamental impacts of Coronavirus on your investment portfolio

Here’s a summary of the fundamental impact that coronavirus has and may have on your investment moving forward:

Fundamental Impact of Coronavirus

Lower consumption in the near term resulting in plausible depressed earnings
Risk of disruption for the global supply chain in the near term given China’s contribution
In terms of regions, Asia to be affected in a greater degree than other regions
In terms of industries, global travel and retail industry to be hit the hardest while healthcare, eCommerce and internet companies are set to benefit from the outbreak

Rapid response by government bodies to contain the virus
Fiscal budget 2020 for many Asian economies will likely to be expansionary to support economic growth
Consumer confidence level is still high while disposable income growth remains robust
Digital consumption to offset near-term dip in traditional retail sales
Recovery might take longer as compared to prior virus outbreak given China’s current economic size and contribution to the global economy

1. Prior virus outbreaks did not derail economic growth and output.