What happens to STI Index during SARS period?
Using SARS 2002-2003 as a guide
16Nov2002: Outbreak in Guangzhou
1Mar2003: 1st patient in Singapore
27Mar2003: All schools are closed
31May2003: Singapore exited WHO list
From 16Nov2002 to the lowest point in Mar2003, STI Index dropped 14%.
If the 2002-2003 SARS, may serve as a guide, the overall impact of the virus outbreak may be modest and short lived on the global economy.
The spread of the disease hit travel industry stocks hard. Airlines, hotels and tourist destinations suffered losses as people scaled back on travelling. We will avoid these stocks.
Once the outbreak is under control, the recovery should be fast.
This is a buy on dips opportunities on quality stocks and ETFs.
16Nov2002: Outbreak in Guangzhou
1Mar2003: 1st patient in Singapore
27Mar2003: All schools are closed
31May2003: Singapore exited WHO list
From 16Nov2002 to the lowest point in Mar2003, STI Index dropped 14%.
If the 2002-2003 SARS, may serve as a guide, the overall impact of the virus outbreak may be modest and short lived on the global economy.
The spread of the disease hit travel industry stocks hard. Airlines, hotels and tourist destinations suffered losses as people scaled back on travelling. We will avoid these stocks.
Once the outbreak is under control, the recovery should be fast.
This is a buy on dips opportunities on quality stocks and ETFs.
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