WUHAN! CORONA! These are words you are unfortunately probably familiar with over the last couple of weeks with the health epidemic occurring in China. For anyone who doesn’t know, the coronavirus has spread expeditiously through China and there have been reports elsewhere globally from people who left China untreated. You’re probably wondering where im going with this. This virus is currently having a major impact on China businesses. With many people being quarantined in the state of Wuhan, businesses are closed, people aren’t working and that simply means less production.
Many economists are currently weighing whether to slash China’s growth projection by nearly 2% with the end of this virus situation not in sight. If production lowers in this particular region of China, what does this mean for the globe? This could prompt many multinational companies to search for new suppliers in the meantime. This could have a boost to an economy elsewhere if demand can be met in an efficient manner. In the meantime, Chinese companies have been suffering in the market and it presents a possible opportunity if a quick resolution can be found to contain the virus contamination. When investing, don’t just think about domestic markets. There is opportunity globally!