When will be End of Coronavirus Pandemic & Stock Crisis?

End of Coronavirus Pandemic & Stock Crisis

There is a repeatable pattern in global Coronavirus life cycle, although cycle duration and magnitude of peak.

China cases has nearly ended (Dec 2019 – Mar 2020), peak was end of Feb as projected in earlier analysis, would nearly end by Mar 2020. China is the first country to start, also the first country to end. So, experience of China (first country to start and end) is useful reference for other countries.

All the world with individual country cases are recorded here (paying attention to max new daily cases, when it is reached, would take about 1 month to reach the 95-99% peak of total cases, then another 1 month to fade away) https://www.worldometers.info/coronavirus/

Similar to stock investment and trading, if there are proven methods in the past 100 hundred years (eg. Fundamental Analysis and Technical Analysis), one could master them first, then gradually refine the strategies.

Korea epidemic is about 1 month behind China (subsiding from the peak, projected by end of Mar 2020), possible duration of Jan-Apr 2020.

This shows that if similar effort is put in (eg. active intervention by local government), the Coronavirus cycle may be about 4 months (2-3 months to reach a peak, 1-2 months to subside).

US and Europe is located further (require international flights to spread the Coronavirus), about 2 months after China pattern, active infection period could be Feb-May 2020 (reaching a peak by end of Apr 2020, fading away in May 2020). US was slow initially, now has started active intervention, possible to follow the 4 months duration. Each year, there are over 100 thousands American die of common flu but many are elderly people with weaker immune system. However, Coronavirus could also kill younger age people younger (mostly more than 40 years old), therefore many people are fearful of this unknown virus.

However, a few countries (eg. UK and Sweden) may not prepare to fight the Coronavirus actively, just let the nature takes its course, likely the peak cases will be more severe in the first 2 months (eg. Iran or Italy cases without active intervention in the first 1 month) with method of community immune system (hoping virus would end naturally or evolve into less deadly strain with many times of infection when over 60% people are infected). So, the duration of this new method of “no invention” as solution is yet to be observed, will be a useful reference for future epidemic but it comes with big price (many death) if it does not work (eg. fatality rate is much severe than common flu).

For Singapore and some countries (eg. Southeast Asia: Malaysia, Indonesia, Philippines, etc), spreading of Coronavirus is slower initially (could be due to warmer weather), but due to cross-infection by travelers of inter-countries (eg. Europe / US / Southeast Asia), start to grow in new cases. Therefore, even with active government control, duration could be longer (but lower peak), period could be 5 months (Jan – May 2020), ending in each country depends on when global pandemic may end unless the country could be totally isolated from the rest of the world (eg. Australia and New Zealand measures of isolating all international travelers for 14 days upon arrival).

Of course, if the last continent, Africa, may also be infected badly, then global pandemic could only end with Mar-June 2020, until all countries have gone through 1 cycle of 4 months infection within the country.

However, even the pandemic may end in summer (Jun-Aug 2020), it may come back as new strain of virus in the next winter (Dec 2020) in another unexpected country or city. So, vaccine development is still key. Last time SARS in 2003 ended too fast in summer, on-going vaccine development was stopped, otherwise it could be modified for Coronavirus as both belong to the same family of viruses.

Global stock markets experienced a minor correction (10% correction) during initial fear of Coronavirus, following by major correction (20% drawdown) when spreading is growing globally as pandemic. Under the worst case, if Coronavirus remains serious beyond this summer, coming back in new cycle of life in next winter, then global financial crisis would be waiting. Therefore, fighting against Coronavirus is not just for health (life), also for wealth later. Without health (life), then wealth is meaningless.

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