Wall Street Catches Cold on Flu Outbreak
Obstacle likely won't deter financial markets for long.
Bryce Knorr
Published: Apr 28, 2009
Just when it looked like the world economy was ready to breathe a much-needed sigh of relief, another source of fear emerged: the Mexican flu outbreak. While Wall Street was able to shake off most of the initial knee-jerk effects of the story, expect fallout from the flu to linger like, well, a bad case of the flu.
To be sure, world health officials appear to have learned valuable lessons after the SARS outbreak of 2002-2003 and numerous bird flu scares. Barring a full-scale pandemic, this new obstacle likely won't prove a major detriment to financial markets. But it's one more potential negative that will linger in the background, at the least, for months.
For money managers this likely will increase aversion to risk just as they were beginning to become comfortable again with putting more on the line. That could mean less investment funds flowing into commodities unless individual contracts have a compelling supply and demand story.
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