Should Investors With Exposure to the Chinese Consumer Worry Over the Coronavirus?
As the world watches the spread of the deadly coronavirus in China, investors are particularly worried about which stocks might be vulnerable to the health crisis. Are stocks with exposure to the Chinese consumer particularly vulnerable?
The coronavirus is a virulent strain of pneumonia that has already sickened about 400 people in China, and at least nine people have died from the disease. Symptoms include difficulty breathing, high fever, and lesions on the lung. Milder cases more closely resemble the flu. The disease originated in the city of Wuhan, China, however, cases have been reported in Thailand, Japan, and the United States. Chinese authorities are taking precautionary steps ahead of the Lunar New Year holiday when millions of Chinese travel around and outside the country, potentially spreading the virus.
On Tuesday, news of the spread of the coronavirus to areas outside of China triggered a sell-off in stocks, particularly in the travel and luxury sector. European luxury names like LVMH (OTC: LVMUY) were down 4% on the open, and several other European luxury stocks such as Burberry, Moncler, and Richemont were weaker as well.
Source Fool.com