Coronavirus' economic impact could be much worse than expected

Driving the news: Of the 364 companies that have held Q4 earnings calls, 138 cited the term “coronavirus” during the call, and about 25% of those included some impact from the coronavirus or modified guidance due to the virus, according to FactSet.

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Apple was the latest, saying Monday it would not meet quarterly revenue expectations due to limited iPhone production and Chinese demand.

What they’re saying: “This will eventually end badly. I have never in my career seen anything as crazy as what’s going on right now,” Scott Minerd, global CIO of Guggenheim Investments, writes in a note. “The cognitive dissonance in the credit market is stunning.”

He’s not alone: “The ramp up in China will take much longer than many expect because of the need to prevent a secondary flare up in contagion,” Diane Swonk, chief economist at Grant Thornton, said on Twitter.

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