US Treasury Secretary Steven Mnuchin made new statements regarding the economic effects of the Coronavirus. Implying that global markets will recover over time, Mnuchin stated that the recent decline creates a new buying opportunity especially for stock investors.
Buying Opportunity Born
According to CNBC’s report, Treasury Minister Mnuchin thinks that the fall in global markets will be short-term:
“This is a short term problem. Maybe it will take a few months, but ultimately we will overcome this problem and our economy will be stronger than ever. ”
Dow Jones and S&P 500 in the USA experienced the most severe drop in one day since 1987 last day. So much so that the market transactions in the USA had to be stopped for 15 minutes yesterday.
Treasury Secretary Mnuchin also mentioned this event and said it actually created a buying opportunity for investors:
“After the collapse in 1987, I remember the investors who bought shares after the economic crisis. The current (decline) is a great investment opportunity for long-term investors. ”
Referring to the collapse in 1987 and the economic crisis in 2008, Mnuchin said there is no crisis for now. According to his statements, the Coronavirus will not have a long-term effect on the markets. Mnuchin said that there is no economic crisis yet and added:
“There is no economic crisis that we cannot predict when it will end now. We will get through them. I think economic activity will revive towards the end of the year. ”