How Coronavirus Crashed Global Stock Market?

31 Dec 2019 When the world was ready t
With all this jubilation & excitement, we all optimistically waited for the new year 2020 to arrive. Little did we know, what was going to happen.

The same day on 31st Dec, the World Health Organization (WHO) was alerted by the Chinese authorities that 44 pneumonia-like cases have occurred in Wuhan, a city of 11 million people.

On 11th Jan, it was reported that a 61-year-old man died from pneumonia in Wuhan.
The disease was later identified as novel Coronavirus or COVID-19. Slowly few cases of COVID-19 started cropping up around the world. But all this while, the stock markets continued to rise.
The market's ignored the seriousness of this new disease and its impact.

On Feb 12th 2020, another news came from China, officials added more than 14,000 new cases to the tally of the infected people, bringing the total number to over 48,000, the largest one-day increase so far recorded. Still, in the midst of such grave news, markets kept on ignoring the imminent threat, the markets kept on increasing.

By 19th Feb many world markets increased closer to their record highs.
There was a sense of triumph across the markets, some market pundits even prophesied that markets could even go higher. But all this upsurge & optimism drastically changed the next day. Reports started arriving, that coronavirus has now spread to 47 countries, which has put pressure on multiple businesses and supply chains around the world has now been hampered, as many countries are dependent on China for their supplies.

So from 20th Feb, multiple market's started showing signs of decline.

27th Feb, saw one of the worst trading days since the 2008 financial crisis.

And soon the flood gates opened, 9 March saw the biggest ever fall in intraday trading.
Two day's later, WHO officially declared the COVID-19 outbreak a pandemic, due to the global spread and severity of the disease.
And so the global stockmarket panic continued.

12th March became Black Thursday, one of the biggest global stock market crash in history. BSE Sensex witnessed its worst one-day fall in history. Three days later on 16th March, the bloodbath of stock markets continued, major indices witnessed one of it's biggest falls. Now in just about a month, since the high on feb 19th, the world had now radically changed.
Major countries have declared national emergency, while many are in lockdown, many places national & international travel has stopped.

164 Countries have reported over 198,000 cases. Tourism, airline, hospitality industries are in shatters. According to some reports, Global stock market losses have climbed past over $16 trillion.

That $16 trillion market loss is close to the GDP of India & China combined. Now, almost 1/3rd of the global stock market value has been wiped off. Everyone is in fear, as we are living in an uncertain world, we all are deliberating, what will happen in the future.

All those people who have invested their hard-earned savings in the stock markets are worried. In such mayhem, it is important to consider the history of the stock market. Historically, the stock market's reaction to such epidemics and fast-moving diseases, like SARS, H1N1 or Ebola has been often short-lived. Previously SARS which is also a form of coronavirus, that broke out also in China, in November 2002.

By the end of Feb 2003, SARS was also recognized as a pandemic. For the next two months, the global market's plunged.
But as the newer SARS virus cases started declining, the market's rose again. Within six months, most of the market's not only recovered but also moved much higher.
Right now, it is not exactly accurate, to compare SARS and COVID-19 as SARS had effected around 8000 people & 17 countries, much fewer than what we are witnessing right now. Moreover, in recent history, we have never seen so many worldwide lockdowns and extreme measures. Moreover, the impact of Coronavirus on multiple industries in the long term is yet to be seen?

Only time will tell what will happen.
But sorrownded by all this turmoil, I am reminded of an old Sanskrit phrase, "Vasudhaiva Kutumbakam", which means the world is one family. All these occurrences around the world remind me that humanity is indeed, just one big family.
Even though we might belong to different races, religions, countries, still, somehow each one of us are connected to each other. Any occurrence to one also impacts the other, even though we might be thousands of miles apart. So let's keep the family of humanity, healthy and safe. And in all this gloom and darkness, let's not forget, that at the end of a dark dreary tunnel, there is always light. Let's hope this darkness ends very soon,

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o welcome the new year, the stock markets across the world ended 2019 on a high note.