Ebola Fear Eases in U.S. Financial Markets
Investors may expect U.S. equity markets to calm after some of the most volatile trading since 2012 as the 21-day incubation period for Ebola passed for many in Texas without new infections, however new developments continue to surface.
Recent losses in the U.S. markets mainly attributed to concerns over global growth and plummeting oil prices, were further fueled by fears that Ebola could spread in the United States, adding to the market's recent convulsions.
It appears that investors are growing more optimistic over the Ebola threat. Several of the stocks that were hit hardest by the fear including airlines and hotels have bounced back and it is also notable that certain stocks rode the scare higher, only to plummet soon after. We believe that anyone who buys panic-related stock must be very careful, as emotional investing can lead to unwise decisions where investors lose money.
The relatively long incubation period for Ebola has the public focusing on the calendar, with early to mid November being seen as a likely time for an all-clear within the United States providing that no new cases emerge beyond what we know of at this time. Ebola can infect a person up to 21 days after initial exposure to the virus, and certain people are still being monitored.
"While Ebola certainly contributed to volatility and concern, there appears to be a slight easing of tension in today's markets," says Jackson King, Portfolio Manager, Hammond Iles Wealth Advisors.
U.S. hospitals reassured the American public that they can contain the virus, as Emory University Hospital in Atlanta reported that an American flown in from West Africa and treated for Ebola there since Sept. 9 was released after being found virus-free.
The worst Ebola outbreak on record killed more than 4,500 people, mostly in Liberia, Guinea and Sierra Leone.
We believe that anxiety over Ebola will fade once quarantine ends for people suspected of possible exposure. The public may have a short memory, but we remain ever vigilant in the face of domestic and global events in our mission to grow and preserve wealth for our investors.
Greg Hammond, CFP®, CPA is a wealth impact strategist who works with individuals, families, closely‐held and family‐owned businesses, helping them grow and preserve wealth, plan for retirement, and manage their charitable giving. You can reach Greg at 1-800-416-1655 or firstname.lastname@example.org for financially intelligent guidance or a Wealth Impact Assessment to show how you can build a legacy of your values, influence, and money without sacrificing your own lifetime goals and objectives.