Corona Virus affects stock market! Best time to invest on beaten down stocks?


The US Stock market has recently faced a steep fall due to the popular outbreak of the Corona Virus in Wuhan, China. People have been evacuated out of the place and numerous flights have been cancelled in succession due to the wide outspread.

With the count of infected people reaching 9,000 approximately and out of which 170 people dead, the virus is truly grabbing all the headlines. 

We cannot ignore the fact that investors are all a bit panicky right now and people who planned to make investments are now in utmost fear and negating the idea. What if we say, you should not kill your investment plan and this is just the perfect moment to go ahead?

At the first place, experts are sure that the virus will be contained and the threat to US is extremely low at this very point. They say that it is not as dangerous as SARS or EBOLA which previously brought a great drop in the global economy.

Secondly, the Chinese government has taken all the possible measures to reduce the impact. The city of Wuhan has been completely locked down which reduces the chances of a huge 1.4 billion population of China from being affected. Wuhan, culminates only 4.7% of the total GDP of the country which ensures that the impact on economy will be low in the long run. 

The Chinese government is in talks with US to increase the trade which will boost the economy of the mainland. All of this ensures that the economical impact on the stocks will be short lived. 

Now that you know that the impact of the virus on these stocks will be only for a short period of time, this makes it the most suitable time to invest on the beaten down stocks. These stocks will soon gain traction from the fundamentals in the market and gather back their momentum.

Here are the stocks to look out for- 


NIKE along with its design, develop and premium sports market generates 17% of revenue from the Chinese mainland every year. Nike plans to invest consistently so that the year 2020 offers great fiscal returns for the investors.

As of now, the stocks have declined by 3.1% but it promises a steady 20.9% in the current year itself according to the experts in the market.

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The Walt Disney Company (DIS)

The line up for the Disney company with their upcoming big brand movies, web series and streaming applications in China is superb. Shanghai Disney Resort and Hong Kong Disney Land are the major addition to the brands success in the country.

The shares currently have a Zacks #2 (Buy) and expected to recover the present 4.7% decline with a 5.1% growth in the coming year. 

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Make your financial calls wisely and do not panic with the corona virus and its impact on the market. The beaten down stocks will offer you greater number of units now and hence will return you double prices when they grow over a period of time.