Coronavirus' spread challenges U.S. investors' blue-sky view

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Coronavirus' spread challenges U.S. investors' blue-sky view
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U.S. investors' persistent optimism that the coronavirus will be short-live...

NEW YORK - U.S. investors’ persistent optimism that the coronavirus will be short-lived is being challenged by increasing evidence that the virus has spread beyond China’s borders.

There has been a spike in new cases of coronavirus in South Korea, and international authorities are trying stop the coronavirus from becoming a global pandemic. Risk averse investors piled into the U.S. dollar on Thursday, pushing the greenback to its highest level in nearly three years against a basket of currencies. Gold, another popular haven asset, climbed to a seven-year high.

While the firm’s base case prediction is that the virus will be largely controlled by the end of March, she said that could be upended “if we see the virus spreading independently in Europe or the U.S. at an accelerated pace,” which could lead to greater global economic disruption. Marc Lipsitch, professor of epidemiology at Harvard University’s T.H. Chan School of Public Health, said by email - repeating comments published on the Harvard Gazette’s website - that there is likely to be a period of widespread transmission in the United States.

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