Equities aren’t divorced from earnings after all. If China powers the world (its demand & manu) then by that logic it being partially shutdown by 1 month (Sunday is 23 Feb & Wuhan shutdown 23 Jan) is going to show up in balance sheets.
What about March? April? 1/12 or 1/6 or 1/4?
What about March? April? 1/12 or 1/6 or 1/4?
Forgot to mention services too (tourism, education etc demand).
Just think about the daily data that people collect to gauge activities (basically showing railway passenger, real estate sales, auto at ~20%or -80% & that goes on for 1 month; some less like Apple -40 to -50) & then see virus spreading to SK &JP. How can this not impact earnings
And clear that this is not gonna end Sunday (1 month anniversary) so that is 1/12 of a year running at very sub potential. Very likely this is gonna be 2/12 & increasingly Japan & Korea infected by the virus (fear of it will keep people home & not spend & demand stuff & services)
And South Korea just showed confirmed jumped to 346 (we started the day w/ just 104 yesterday) w/ 2 deaths & 17 recovered. So this is going to impact South Korea's growth (not just supply chain but also demand). Was already slowing before this. Exports fell double digits in 2019.
