Covid-19 (coronavirus): the impact on global trade

Around 3,000 deaths, 81,000 cases and 6 continents infected. The pandemic nation scare has invested into goods left at sea for sure. A virus that halts more than just the economy. Most economic predictors projected for the virus to harm at the bare minimum. As the supply chains around the world are being disrupted from a once robust market.

The safety of bonds is investors’ best friend. For a few weeks, there has been an odd divergence among those trying to predict what the coronavirus might mean for financial markets and the world economy. Global commerces big and tiny were warned of substantial disruptions to their businesses. The disease could possibly circulate far beyond Wuhan of China.

Like always, investors, financial markets and most economic forecasters did not consider the virus to be a major threat to corporate earnings, despite the clear evidence of China’s economy taking a rough hit — at the least, nothing that an interest-rate cut or two from the Federal Reserve couldn’t fix. The S&P 500 hit a new luxurious high last week on Wednesday. Since that newfound high last Wednesday, the S&P is down more than 7 percent.

The 10-year United States Treasury bonds dropped down to their lowest levels on record. Investors should expect a significant economic deterioration while accompanying Federal Reserve interest-rate cuts.