conclusion

Conclusion

Markets around the world have fallen as investors fear fallout from the virus could further weaken the already struggling global economy. Mexico have become infected with Swine flu, also known as Influenza A H1N1. Nearly 90 people have died from the outbreak. The strain appears to have spread to several countries including the United States Asia and Europe.

Some individual stocks or industries might be affected more than others, such as airlines, leisure and even retailing as people forgo travel and stay at home. However, the impact on the overall market will likely be minimal and short-lived same as the SARS (severe acute respiratory syndrome) outbreak in 2003 as the most recent example of a health scare.

Certainly, health care stocks could benefit, while travel-related and other economically sensitive stocks could suffer in the near future. But for long-term investors, analysts warn against making any bold, sweeping changes to a portfolio, and instead advise putting a few extra hedges in place to protect against potential losses.

We are continuously assessing new information, but it is still too early to draw conclusions about the extent of the spread of this new virus around the world, the severity of disease caused by it and the actual economic damage.