Coronavirus fear creates the worst week on Wall Street since 2008

MEMPHIS, Tenn. (WMC) - Coronavirus concerns have created the worst week on Wall Street since the financial crisis in 2008 and economists believe the worst is yet to come.

Companies like Apple, Nike and Microsoft already say they won’t meet quarterly revenue projections as the virus disrupts the supply chain.

The Covid-19 strain of coronavirus is sending ripples through the world’s economy. The epidemic is creating widespread uncertainty. But as the stock market drops off in reaction to coronavirus news, financial experts say panicking could be detrimental to your investments.

“I think the worst thing you can do here is focus on today, tomorrow, and next week. I think if you’re invested in the markets, you want to stay invested, and if you have capital, you want to very thoughtfully speak with your adviser about when is the most prudent time to deploy that capital,” said Trip Miller, Founder and Managing Partner of Gullane Capital Partners.

Miller expects the uncertainty behind the spread of the virus will cause the federal reserve to cut interest rates rapidly to stabilize the financial sector.

“The great unknown is what the effect of the coronavirus will be on U.S. businesses and the global economy. Our take is, this is probably a disruption for a quarter or two,” he said.

Experts also predict the virus will stress the electronics industry since a significant share of electronics components are traditionally sourced from China.

“We haven’t seen extreme disruption yet in the supply chain but we are seeing a lot of signs of it picking up pace and having a greater impact than anyone would have expected even a month ago,” said Miller

Memphis-based FedEx said in a statement Thursday, “FedEx Express continues to operate inbound and outbound flights to and from impacted areas as local conditions and restrictions allow, and we are taking recommended precautions in terms of pilot, team member and customer health and safety”.

The Washington Post is reporting Trump administration officials are considering a tax cut package as part of the White House’s economic response to the coronavirus outbreak.