Coronavirus Stock Market Forecast – I Know First Presents New Special Package


Coronavirus Stock Market Summary:

  • COVID-19 number of cases is increasing and, no signs of stopping;
  • Automotive and airline companies may take the biggest hit in 2020;
  • Medical and biotech stocks are the opportunities in this situation;
  • Netflix and other streaming services can benefit from the outbreak.


Due to Corona-virus (COVID-19) infectiousness characteristics, the disease started spreading globally since December 2019 despite the efforts made by Chinese government. On February 27, the World Health Organization published a report announcing that over 81,000 cases of the disease were confirmed, with 78,000 being in China. The number of deaths worldwide exceeded 3,300, with almost 300 of them outside China. With Brazil confirming its first case, COVID-19 is now officially in all continents of the planet. As of now many pharmaceutical and biotech companies are racing towards developing cures to combat the spread and decease itself, but the careful estimates on the timeline are ranging between one to two years. Finally, economies worldwide responded with downturns and Coronavirus stock market forecast is needed more than ever before.

Impact on the Stock Market

Source: Google Finance

Stock market is experiencing significant turmoil over the last month due to outbreak of the Corona-virus COVID-19. The macro and micro economic effects are extremely complex to foresee within the context of the disease spread and a lot of factors need to be taken into consideration to keep the investors value preserved. One of the key elements is the fear that is spreading among investors due to low reliability and lack of meaningful estimates about the response actions from the leading countries’ governments. As a result markets saw extreme volatility indices hike over short period of time:

Are There Any Market Opportunities?

Due to the timeline mentioned before investors need to take into account investment horizons ranging from short- to long-term. Without any possibilities to contain the virus spread in the short-term, it is reasonable to expect global markets to show downward trends with some adjustment for mid-term horizons. Companies that depend on longer supply chains with wide distribution around the globe are the most vulnerable to face operational challenges. As such, Toyota announced that Japanese production lines may be affected by corona-virus related issues, while Hyundai shut down one of its plants along with Tesla facing decrease in the number of vehicles registered in Chinese Mainland.

Airlines and their supply chain stocks might struggle with corona-virus. Without feasible options to contain the spread, they are halting the whole directions the most affected countries and people tend not to travel, impacting the airlines’ revenues and posing vital operational risks. For example, Lufthansa already declared that some of their short- and medium-haul flights will be reduced in response to corona-virus. Other companies like United Airlines and American Airlines declared changes due to the virus spread. As a result, these companies’ stock price lost a lot since the corona-virus started its rally around the world.

As any crisis, these times may also bring new market opportunities to the economy sectors that are actively engaged in activities against the virus spread. As such, pharmaceutical and biotech companies that are developing vaccines and relevant drugs should be viewed as opportunities. Companies like Crispr Therapeutics (CRSP), that can get the genome sequence and speed the process of creating the vaccine, might as well worth a look. Alpha Pro Tech (APT), a company specialized in masks and protective apparel could expect increasing sales if the disease remains for more time. The same goes for Lakeland Industries (LAKE), a company that produces protective clothes for high-risk workers. Their stock rose from $5 to $21 in just one week and the trend may not go down.

The market opportunities may also appear in industries which may not be apparent from the first glance, especially in those that are heavily utilizing internet infrastructure and remote services. Anti-virus public restrictive measures keep people in houses, avoiding crowded places and traveling. The number of people spending time at home is increasing and that can be a “jump-start” many media streaming services such as Netflix, Spotify, and Amazon Prime, boosting their operational indicators and their stock prices. Gaming industry could be taking the same wave of hiking revenues, which could help not only Sony, Nintendo, and Microsoft, but also companies of their supply chains – NVidia and AMD.

What to Expect and How to Act?

Since we don’t have an exact timetable to when the threat will be over, investing in companies with that profile seems risky. Even though risky is not exactly a problem when a high reward comes together, this might not be the case. Until any solution appears, it is hard to predict when and if these companies’ stocks will increase their value.

I Know First team stays sharp on the latest developments and trends in the stock market worldwide and as a response to this extraordinary challenge to the investors community is introducing a special AI-driven forecasting package – Coronavirus stock market forecast package. The main focus of the package is to cover the assets that may be affected by the corona-virus with the biggest financial exposures and it includes assets such as gold and relevant commodities, biotech companies’ stocks, pharmaceutical companies’ stocks, semiconductors and technological sectors stocks and more.

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I Know First, Ltd. is a financial technology company that provides daily investment forecasts based on an advanced, self-learning algorithm. Thus, the company’s algorithm predicts over 10,500 securities (and growing). Thus, it has capabilities to discover patterns in large sets of historical stock market data.

The underlying technology of the algorithm based itself on Artificial Intelligence. It also based itself on machine learning and incorporating elements of artificial neural networks and genetic algorithms. Moreover, the algorithm generates daily market predictions for stocks, commodities, ETF’s, interest rates, currencies, and world indices for the short, medium and long-term time horizons.