Flu and world economic patterns

Flu pandemic could KO airlines – Yahoo! News:

A mild global flu pandemic could present a buying opportunity for stock investors, while a severe outbreak could see profound changes in the world economy, according to a global Citigroup strategy note released on Thursday.

It’s certain that airline stocks are going to remain depressed and volatile until the world has a viable system for managing a pandemic rather than a series of stop-gap national measures. Moreover, the potential for stock valuations is more uncertain than Citigroup appears to allow in the research note, since they are only looking at a scenario where demand is impacted. What if an executive team from a major company traveling for business comes down with the flu and much of a corporate leadership team is decimated—flu deaths happen in clumps, they are not spread evenly across the population—which could tank a particular stock while the rest of the market is only mildly impacted by flu.

Technorati Tags: , ,

Author: Mitch Ratcliffe

Mitch Ratcliffe is a veteran entrepreneur, journalist and business model hacker. He operates this site, which is a collection of the blogs he's published over the years, as well as an archive of his professional publishing record. As always, this is a work in progress. Such is life.