By SUNNY OH
Even as fears about the spread of the coronavirus have sent global stocks tumbling, one of Wall Street’s biggest banks is urging investors to stay the course.
Analysts at JPMorgan have yet to budge from their positive view on global equities, in part because they say similar health scares historically have failed to derail even local stock markets, which can be the most vulnerable to the economic consequences of a virus pandemic. Instead, a team led by Mislav Matejka underscored that past outbreaks served as “buying opportunities, rather than the reasons for sustained selling,” in a Monday client note.
Even though the coronavirus remains in its early stages and “is likely to worsen before getting better,” JPMorgan analysts stressed that prior global health scares failed to unsettle equities for an extended period.