facebookWhy is the market so fearful right now? The short term coronavirus shouldn’t hurt much in the long term right? - Seedly

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Anonymous

26 Feb 2020

Random

Why is the market so fearful right now? The short term coronavirus shouldn’t hurt much in the long term right?

Why do people panic when the market will obviously recover?

Discussion (11)

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Think of it as waves.

currently we have the corona wave, media = multipliers.

after some months there will be no persisting corona noise nor safety issues.

In the long run the markets will recover. As Warren Buffet once said be “Fearful when others are greedy and greedy when others are fearful".

However, human nature doesn't really react that way, does it? Especially with the uncertainty and governments unable to handle the situation without any solutions, bound to be fear in the masses.

Rais M

26 Feb 2020

Accountant at SME

This is what some called the behavioural finance. A chain of effects where investors starts getting fearful and sell their stocks, causing a drop in the market, resulting in more people selling, causing further drops. But remember, these are generally short term. Back than, SARS only drop for couple of months before it start climbing up again. In the long term, I trust that it will not hurt as much and things will be back to normal. Hopefully, we are greedy by than.

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Andy Sim

26 Feb 2020

HR Professional at a Financial Institution

Boils down to behavioural finance - "It focuses on the fact that investors are not always rational, have limits to their self-control, and are influenced by their own biases."

You may not be fearful now, but ALOT of investors have, since there are alot of uncertainties now. Markets hate uncertainties...

Thats because we have invested our hard earned money in the stock market and nobody likes to see see...

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