The Coronavirus and the Stock Market
I am quoted in the Baltimore Sun on the coronavirus and the stock market.
“There is a lot of uncertainty,” said David I. Kass, a clinical professor of finance at the University of Maryland’s Robert H. Smith School of Business. “No one knows the degree that Americans or any company will be affected. … There’s concern over, ‘How bad will this get?’ and ‘When will it end?’
Kass said he believed the market sell-off to be an overreaction.
“Most stock investors, I recommend, be long term,” he said. “Short-term traders and speculators I can see being concerned. I believe the coronavirus probably will be resolved for the most part in a year,” after more medical interventions are developed and available. “The economy will start recovering and so would the stock market.”
Kass said Maryland companies’ stock sell-offs, in line with the broader market, show “the market believes that they’re not any more vulnerable to the coronavirus than the rest of the economy on average.”
