Since the beginning of 2020, we had had a health crisis that seemed to many to be small, but soon this crisis evolved and spread dramatically, even it grabbed the attention of the global media. Although Coronavirus has begun as a health crisis, it has weighed heavily on the economic sector in China and then on the global economy with the beginning of its expansion and spread.
Coronavirus crisis has hurt the Chinese economy, as many companies, factories, and stores in China have closed in a try from the Chinese government to take control of this crisis. As a result, the manufacturing index – PMI – recorded its lowest record ever 40.3 last February, indicating a major paralysis in the Chinese economy.
Recently, global stock markets dropped sharply to low levels because of Coronavirus epidemic outbreak around the world. Although bears are largely in control of most markets during the current period, bulls wonder and wait for the right time to seize the opportunity, which by it they can regain control again. The situation is currently tempting, and who can take advantage of the appropriate time and opportunity, can achieve wealth and huge returns.
Markets Are at Low Levels
Although the crisis is healthy, not economic, most of the markets at very low levels. That means the share prices are below its fair prices at this time. Therefore, it is expected with the recedes of this crisis, stock markets will witness tremendous cash liquidity.
The Crisis is Healthy, Not Economic
Everyone knows that Coronavirus is essentially healthy crisis and has turned to an economic crisis with these measures and restrictions has imposed by countries to control and prevent the outbreak of this epidemic. Now, Coronavirus crisis is the main reason for global stock and financial markets decline. However, it is expected with the recedes of this crisis the economic life will back to normal again, the wheel of production will return, and everything will return to what they were before over time.
Bulls Wonder When the Opportunity Will Come?
currently, we are talking about markets decline, meaning that the bears were able to take control of the markets in the recent period significantly, hence, achieving very rewarding returns. On the other hand, the bulls wonder when will the opportunity come to buy shares and financial derivatives from its low levels until they can reach again the historical levels achieved by some stock markets recently?