STEVENS POINT, Wis. (WSAW) -- The CDC is warning Americans to prepare for potential Coronavirus outbreaks in the U.S.
Professor Bahr looks at the stock market (WSAW Photo).
Now, companies like Apple, Nike and Disney, who do major business with China, are taking a big hit in the stock market.
Professor Kevin Bahr from UW-Stevens Point says you could start to see a shortage of things produced in China, like iPhones, but the issue is that we don’t know how bad the coronavirus is going to get.
“The stock market absolutely hates uncertainty,” said Bahr.
Bahr is a professor of economics and the chief analyst for the Center for Business and Economic Insight. He says younger people with years until retirement are at an advantage when the Dow drops.
“If you’re in a position where you need to start pulling money out of the stock market relatively soon, then you may not be able to ride out the ups and downs of the market,” he said.
Because of how connected we are, the Coronavirus will likely have a larger impact on American money and products than SARS did 20 years ago.
“If I’m doing business with a company in Europe, and they’re sourcing from China, and now I can’t source from Europe because they can’t source from China, so it affects a wide variety of companies.”
While moving foreign jobs to America might sound like a fix, it’s unrealistic, he says.
“Number one, it’s going to take you some time to do that. And number two, it’s going to translate to a higher cost to do that, which is going to translate to higher prices for American consumers,” he said.
But Professor Bahr says there’s no need to grab your money. The stock market will inevitably bounce back, just as it did after the financial crisis.
“If you have a long investment horizon, you should be just fine,” he said.
Professor Bahr says until we get some clarification about how bad the spread of the virus will be, we can expect the market to go up and down based on the uncertainty.
To read more on his blog, click here .