There’s a lot of uncertainty around the swine flu situation.Again, these are just some of the possible short-term effects we could see resulting from the swine flu epidemic news. Further, it’s worth remembering that at this point, even the authorities have limited information on and predictive power over the swine flu situation. Lets see the sectors which will be effected by the spread of swine flu.(Source:etfdb.com)
Sectors That Could Be Hit Hard
• Transportation sector: Travel advisories and recommendations to stay home won’t help transportation stocks.
• Energy: Fewer people flying and traveling in general could cause weaker overall demand for energy and crude oil funds.
• Equities in general: As we’ve seen in the past six months, a little bit of uncertainty can go a long way towards causing equities to tank.
Sectors That Could Get a Lift
• Pharma and Healthcare sectors: In anticipation of demand for vaccines and health services, shares of pharmaceutical and healthcare companies could appreciate.
• Gold and Commodities: In the last year precious metal ETFs have been popular buys on days when panic seemed to set in.
• Treasuries: Similarly, a flight to safety away from equities could make for inflows in bond funds thought to be very secure.
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