Monkeypox is a virus that has gained some media attention in the past few weeks. Although cases have not become endemic on a global scale, many still harbor fear over the new virus as we are just coming off of the catastrophe that was Covid-19. But, will Monkeypox hurt the stock market? We spoke to some financial experts to get their take.
It Has Already Began Affecting Some Stocks
Maria Saenz, CEO at Fasttitleloans, says:
“Through infections due to Monkeypox are rarely reported outside of West and Central Africa, 92 cases have been confirmed this month in the countries where the monkeypox virus isn’t labeled endemic, including the USA and Europe. A company named Bavarian Nordic BVNKF -6.77%, saw shares plummet 4.6% on Monday afternoon.
It has an MVA vaccine for Monkeypox and smallpox, known as Imvamune and Jynneos. It said last week that the Biomedical Advanced Research and Development Authority exercised its option to purchase 13 million doses of Jynneos for $119 million. Similarly, Siga Technologies -12.66%- saw its shares reduced by 8% in trading on Monday.”
Meaning Things Could Get Worse
Daniel C. Foley, Marketing Manager at Perspective Pictures, tells us:
“Monkeypox, in my opinion, is worrying and has already caused havoc in the share market; if it were to spread, the consequences would be severe and could harm the stock market. Monkeypox, I fear, may jeopardize economic recovery plans, adding another component to risk estimates about gatherings. Rising Covid cases had already pushed back some organizations’ dates for return-to-work plans.”
Some Believe There is No Reason to Worry Just Yet
Patrick Schulte, the co-founder of Wanderer Financial, says:
“There is currently no reason to make any adjustments to trading or investments based on fear of a monkeypox outbreak. While the disease’s spread is concerning, there is very little chance—based on currently available data—that this will cause the sorts of problems we’ve seen with Covid.
The smallpox vaccine is proven very effective, and with such a recent experience, I expect our government will be able to react quickly to any true outbreak. Transmission of the disease is also much different than with Covid.
For these reasons, I don’t anticipate any reaction by the stock market to the monkeypox outbreak and suggest that traders simply keep an eye on the news as it develops. Currently, I do not recommend any change in people’s trading or investing strategies.”
Others See the Possibility of it Affecting the Market Down the Line
John Hart, the co-founder and CEO of Falcon River explains:
“The fear of Monkeypox is getting into the limelight. Many countries have raised their concern about high infections and spread rates. With this, the medicine manufacturers have seen a shoot-up in sales of medicines and other goods. The surge might bring ups and downs in the stocks. Along with that, an increased rate may bring the economy to a halt and further worsen the stock exchange and gold rates globally.”
It Likely Won’t be as Disastrous as Covid
Dominick DeJoy, director at WINDOW, tells us:
“From my perspective, investors must understand that monkeypox will very probably not provide an opportunity on the scale of COVID-19. Monkeypox has been documented in over 200 cases throughout the world thus far. Although the numbers may rise, Monkeypox is unlikely to be as dangerous as COVID-19, because we now have efficient vaccinations.
Smallpox/monkeypox vaccinations and treatments might be increased in some areas. President Biden, on the other hand, declared last week that the United States already has adequate immunizations on hand. I think some of the stocks may have grown much higher than the Monkeypox possibility merits.”
However, There is Still a Good Amount of Uncertainty
John Frigo from Best Price Nutrition says:
“Markets and Individuals hate uncertainty, a bad story or bad event is still better than uncertainty. With Monkeypox, things are completely up in the air, within the past week or so it went from Monkeypox can’t jump to humans, to Monkeypox is only spread via male on male gay sex, to oops we think it may be airborne. So the whole Monkeypox story is something we have no idea what it may turn into which is terrible for markets.
In terms of how to prepare I wouldn’t do anything, I’d kind of wait to see how all this plays out. I’d be tempted to make some buys as I think this is, for the most part, a non-story, however, Monkeypox story aside, I feel like the market has a ways further to go down so I wouldn’t buy in now.”
Making Sure Your Portfolio is Diversified is a Good Idea
Christiaan Huynen, founder and CEO at DesignBro, says:
“This is not the first time marketers are hearing about a deadly virus that can destroy the stock market. Monkeypox is being touted as even worse than the Coronavirus but marketers should already have the blueprint on how to deal with proceedings.
One way to prepare is by stocking in advance, analyzing the market beforehand, and using it to improve on both fronts. This would take time and further investment but in the long run, works out well for companies.
Another way to deal with the forecasted damage is to start side businesses and shift to an online work model. The more diversified one’s portfolio is, the more they are likely to stabilize its revenue over a while.”
And finally, Andy Kolodgie, real estate expert & owner of Sell My House Fast, explains:
Just like the Coronavirus, Monkeypox can also wreak havoc in the stock market. So, the best way for investors to prepare for it is to diversify their portfolios. It’s essential to put your investments into different markets so that you won’t face massive losses in case the market comes crashing down.
Keeping Monkeypox in mind, the need for vaccinations and medications will increase. As a result, increasing the stock prices of various pharmaceutical and drug companies. So, it’s best to buy shares and stocks in such organizations because their sales and profits will definitely be on the rise if Monkeypox cases continue to increase rapidly.”
Final Words: Will Monkeypox Hurt the Stock Market?
Sentiments are mixed on whether or not the Monkeypox virus will hurt the stock market in the long run. For now, investors may want to lean towards the side of caution before making any major investments, however, many agree it is really still too early to tell if the virus will have any serious effects on both the economy and the stock market.
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