Ebola & Its Effects On The Market

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In 2014 the Us is experiencing one of the biggest viral threats its ever faced. Ebola has left the depths of Western Africa and has taken center stage as a hot button topic for Americans. Loss of lives, uncertainty and utter panic have created quite an uneasy environment for the markets as well. The US stock market is experiencing some of the most drastic swings since 2012 according to Reuters. These swings were due to the fear of the Ebola virus spreading to other regions outside of Africa
According to Public Finance International, the emerging economies have started to show signs of major concern, for instance, Chinese debt has started to sky rocket which will prove for unstable returns in the long run. This is very problematic because the financial collapse of 2007-2009, has left the American Economy and European Economy saddled in debt. Since then, the emerging market as become the new expected investing heaven. However, due to the rising debt in the Chinese Economy, the safety net as began to unravel.
Ebola has not only affected the US markets but European markets as well. According to the Telegraph, the impact of fear over Ebola has sent trembles in the market. Analyst at Barclays are bracing for the remnants of this new erratic financial market. Due to the mass panic, one of the largest indices slumped (massive sell off) on European stock sending shock waves throughout the world.
In the world of international finance, the UN, World Bank, and IMF, According to EmergingMarkets.org met and have projected that Ebola can wipe away $33 billion from African over the next two years.
Some of the other serious factors to consider is the fear that countries will start cancelling flights and setting up trade restrictions. Due to the fact that the world is in a global financial web, if countries started to setup financial barriers, the global economic system would crumble.
As local Investors, we have to be aware of these signs and its implications, we must use these facts as tools to help us make more informed and tactical decisions .

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Ricardo Taylor

Finance Contributor at Hutchbydesign
Ricardo Taylor is a Professional Day Trader. He conducts various trades with the US financial instruments (ETFs Index, etc). For over 3 years, he as conducted analysis on the financial market . He have also received is BA in Economics at Hofstra University.
Ricardo Taylor is a Professional Day Trader. He conducts various trades with the US financial instruments (ETFs Index, etc). For over 3 years, he as conducted analysis on the financial market . He have also received is BA in Economics at Hofstra University.

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