Morning all.
Saw this story, which picks up on the point I was making at the weekend about how the virus is far from beaten despite all the attention being given to the US re-opening plans.
One of the reasons I think this is important is that these Southeast Asia countries are part of an emerging market block that have been responsible for helping to lift global GDP growth in recent years. While the developed world economies have been growing at rates around 2%, many of these economies manage 6% growth.
A similar story is also developing in the middle-east with Saudi-Arabia leading the way with quite steep increases over the last week, and Turkey actually took the unwanted crown of overtaking China and having the most cases in the world outside of USA&Europe. There’s not much attention being paid to this.
Not sure what immediate market implications this has, probably insignificant given the lack of concern being shown but there are some risks here if the spread continues and these countries start to take stronger mitigation measures.
I’m going to catch-up on Oil news today as I saw the headline that price dipped to a level not seen since 1999 overnight. I’ve avoided energy stocks but maybe with prices so low, if stocks also come under pressure, now could be the time to look at Oil majors like Exxon, BP, Shell, Total and consider the potential for investing in an energy market recovery over the next year as this virus situation will be beaten at some point.
I’ll post about that later to share some thoughts.
Stay safe, thanks for your time.
$OIL $SPX500 $EEM $NSDQ100 $AAXJ
