/perspectives/media/the-coronavirus-threatens-the-global-economy

The Coronavirus Threatens the Global Economy

Scott Minerd, Chairman of Investments and Global CIO, joined CNBC’s Fast Money to discuss his market and economic outlook, including the potential impact of the coronavirus.

February 13, 2020

 

Key Takeaways:

  • The impact of coronavirus could slow annualized Q1 GDP growth in China to minus 6 percent, which would shave 200 basis points off global growth.
  • In this environment, it is unlikely that China’s production levels will return to pre-lunar holiday levels.
  • Whether or not the Fed wants to call their policy QE, its balance sheet is growing and that drives asset prices.
  • The continuing liquidity provided by central banks could spur a 15 percent rise in equity markets.
  • With so much demand for fixed-income, the market is running out of bonds to buy.
  • There will be a buying opportunity at some point over the next few months; dry powder can give investors flexibility to take advantage of it.


Read Global CIO Outlook: “Peace for Our Time”


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