What to Expect as the Virus Continues
We discuss our latest views on stopping the spread of the virus as well as the economic implications.
|Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.|
As the coronavirus continues to spread and impact both the health of humanity and the economy, our healthcare strategist, Karen Andersen, sat down with director of personal finance Christine Benz to share her analysis of the impacts and government response. More states have issued stay-at-home orders, and more than 100,000 tests are being performed every day in efforts to reduce the number of cases as well as restrictions. A recent paper by Andersen and equity analyst Preston Caldwell highlights several treatments in clinical trials for an effective treatment for the virus.
While the waves of the virus and social distancing measures are projected to continue into the second half of the year, the economic impact is not expected to be long term. Maintaining social distancing measures to contain the virus is the main priority--along with the ability to use various apps to track the locations of people who have contracted the virus. Technology is imperative during the quarantine as businesses work remotely and research on the virus continues. On that same note, limitations are present: the shortage of ventilators and beds in the ICU. Companies are trying to respond quickly to increase capacity, but it is likely that the virus may overlap them. The worst wave is expected to hit in April. Improvement at the beginning of May can be expected if social distancing orders are obeyed, possible treatments continue to be tested, and the capacities of hospitals increase.