Question

In: Finance

What do experts believe about the risk of our financial markets, both in the short-term and...

What do experts believe about the risk of our financial markets, both in the short-term and in the long-term?

Solutions

Expert Solution

Experts have mixed opinion about the risks of our financial markets, both in the short term and long term.

Short term:

Experts have shown pessimism in the short run. The current environment is driven by fear of epidemic in the wake of Covid - 19. There is lockdown all across. USA, Italy and Spain had been worst affected. China is showig some recovery.

The financial markets have been adversely impact. Sharp decline had been witnessed across financial markets across the globe. In the short run, the macro economic concerns remain. Experts believe that things will take about 2 quarters from here to come back to normal.

Long run:

There is a wave of optimism in the long run. Experts do believe that a new world order is shaping up after this Covid - 19 chapter. Countries will emerge stronger and will drive the world towards an even stronger economic system. The markets will restore to normalcy and must support a robust growth across economies.


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