AnswerBun.com

In March 2020, why did stock indices of Asian countries that curbed COVID19 still plummet?

Economics Asked by user4020 on January 4, 2022

By March 1 2020, both HK and Japan restrained and quelled COVID19, compared to France, USA, UK. Don’t hesitate to discuss other countries unscathed by COVID-19.

enter image description here

One Answer

I cite some of better comments from r/investing and r/stocks.

  • Because all their customers are in countries that didn't curb it.

  • Everyone else follows America. US equities are half the value of all equities in the world.

  • I would guess that Asia is an export economy largely to the rest of the world so tends to correlate with the rest of the worlds performance. However, the P/E ratios are likely lower than what you'd find in the developed world so there might be some opportunity for good gains when the broader economy picks up.

  • Because there was a gigantic flight to the US dollar in March. Pretty much every single asset across the board (yes, including safe havens like gold and US treasuries) fell versus the USD.

Answered by user4020 on January 4, 2022

Add your own answers!

Related Questions

Questions regarding ordered probit model

0  Asked on July 17, 2021 by konstantina

 

Estimation of variables

0  Asked on July 14, 2021 by avr

 

Ask a Question

Get help from others!

© 2023 AnswerBun.com. All rights reserved. Sites we Love: PCI Database, MenuIva, UKBizDB, Menu Kuliner, Sharing RPP, SolveDir