FEAR OF THE CORONAVIRUS
By Nitesh Shah, Director, Research, WisdomTree
Redacción | Miércoles 19 de febrero de 2020
“Gold is trading near a seven-year high as coronavirus fears continue to drive investors towards the historically safe-haven asset. Coronavirus deaths in China topped 2,000, while there have been 2010 deaths worldwide. Globally there have been over 75,000 cases of the disease. Equity markets appeared to be brushing off the effects of the virus, until yesterday when Apple Inc reported that its earnings will take a beating as the virus damages supply chains.
Representing close to 5% of the S&P500, the single company has an outsized weight on investor sentiment. Gold is a natural port of call in times of investor anxiety. Closing above the psychologically important US$1600/oz for the first time in seven years, gold is showing its mettle in times of uncertainty.”
Historical performance is not an indication of future performance and any investments may go down in value.