Coronavirus infographic: greater impact on the stock market than Spanish flu with 50 million deaths
Although the Spanish flu caused around 50 million deaths in 1918, the Dow Jones index fell only 14.3%. Since the start of the decline on February 17, 2020 following the coronavirus epidemic, the American index has dropped by 34.5%, according to an infographic from Kryptoszene.de. Nevertheless: comparison with other financial crises shows that share prices can fall further.
During the economic crisis of the 1930s, the Dow Jones index fell 89%. During the crashes of 1987 and 2008 – 36% and 54% respectively (see infographic). The Spanish flu, on the other hand, had a much weaker influence on stock prices, despite the higher number of deaths. The search for Kryptoszene.de is based on data from “Bloomberg“And”RWI – Leibniz Institute for Economic Research“.
Meanwhile, the duration of a stock market crash cannot be assessed at this time. During the Great Depression that began in 1929, the Dow Jones Index took 34 months to return to its previous high. In 1987, it recovered its value in two months, in 2008 – in 17 months.
The DAX falls even lower than the American index
The Dow Jones index is not the only one to fall. The DAX has also lost around 37.24% in value since February 2020. The leading German index loses points in each industry. Companies in the mechanical and mobility sectors are the most affected. The least affected are companies in the energy and raw materials sectors. Even if, even here, losses average 17.36%.
Coronavirus Could Attract Investors
It is still unknown how long the coronavirus will lower the stock price. However, past data shows that major stock market disruptions can also benefit investors.
In the wake of the latest coronavirus pandemic, German politicians fear that German stocks or businesses may not yet be able to sell. Federal Transport Minister Scheuer has declared that this is not only a viral attack but also a dangerous attack on the economy.