Virus Worries Weighed On Stocks As REITs, Bonds Rose Last Week

Jan 27 12:01 2020 Print This Article

China’s spreading coronavirus took a bite out of risk assets late

last week, inducing a run into safe havens.

US real estate investment trusts (REITs) and US bonds posted

gains for the trading week through Friday, Jan. 24. Meanwhile, stocks and

commodities took a hit, based on a set of exchange-traded funds that represent

the world’s major

asset classes.

China’s economy is expected to take a short-term hit from the virus fallout, predicts Danske Bank Chief Analyst Allen von Mehren. In a research note today he estimates that GDP in the country may be one percentage point lower in the first half of 2020. He advises that “we are in uncharted waters as a virus of this kind has not taken place in the more modern economy that China is today, with much wider transport networks and being more integrated with the global economy.”

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About Article Author

The Capital Spectator

CapitalSpectator.com is a finance/investment/economics blog that’s edited by James Picerno. The site’s focus is macroeconomics, the business cycle and portfolio strategy (with an emphasis on asset allocation and related analytics). In late-2009, the Eastern Economics Journal named Picerno as one of the nation’s “top economics bloggers”. Picerno is the author of Dynamic Asset Allocation: Modern Portfolio Theory Updated for the Smart Investor (Bloomberg Press, 2010) and Nowcasting The Business Cycle: A Practical Guide For Spotting Business Cycle Peaks (Beta Publishing, 2014). His articles on finance and economics have appeared in a variety of publications and news outlets over the years, including The Atlantic, Financial Advisor, BankRate.com, HorsesMouth.com, and Bloomberg Briefs: Economics. He also pens a daily economics column for the Saxo Group’s TradingFloor.com web site. Picerno has been writing about investing and macroeconomics since the early 1990s at Bloomberg, Dow Jones and other media groups before becoming an independent writer/analyst in 2008. He also offers consulting services on asset allocation and portfolio strategy, the US business cycle, and related data analytics in R and Excel.

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