Evercore Says How to Invest Before Virus Market Impact Is Clear
- Not enough data to dismiss virus as risk to stocks: strategist
- Goldman likes cyclicals, value shares if virus impact limited
Commuters wearing protective masks exit a subway station after the extended Lunar New Year break in the Lujiazui Financial District of Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
It’s a tough task to gauge the ultimate impact of the Wuhan coronavirus on life or economies, much less on markets. So Evercore ISI recommends a holding pattern.
Without clear signs that risks of the virus have passed, there’s likely to be continued hedging against potential deflation in China as headlines remain volatile, strategist Dennis DeBusschere wrote in a note Sunday. While the uncertainty may anchor bond yields and endanger last week’s gains in value stocks, Evercore is asking investors to not act with the assumption that there will be a pandemic.