NEW YORK (Reuters) – The coronavirus shockwaves rippling through U.S. stocks are forcing investors to contemplate outcomes more dire than a recession, including several quarters of declining economic activity, a credit crisis or even a depression.
The rising global toll from the pandemic and the uncertainty over how far it may spread has left investors and economists scrambling to gauge the financial fallout.
“This market looks like it has already priced in most of a garden variety recession,” said Frances Donald, global chief economist at Manulife Investment Management. “It is now on top of that having to price in some probability of a credit crisis.”
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