Local experts say coronavirus impact on stock market, travel, is mostly short-term

The bell signaling the closing of the New York Stock Exchange today was not a ring of celebration. Notre Dame economics professor Jason Reed says it's based on global fear.

“If you were to take the US core macroeconomic fundamentals and you just look at those without knowing the coronavirus is happening, without knowing oil prices are plummeting, for these reasons, you’d say ‘wow the US is really good position right now,’” said Reed.

He doesn't believe it'll have many long-lasting effects for your retirement or the market.

“It’s not changing how companies fundamentally do business,” said Reed. “We would think then they would go back to being valued appropriately after this shock.”

But what he is concerned about are cancellations of major events and people avoiding buying goods.

“What was a supply side issue that could likely fix itself once the virus was contained to some degree, now we have to really worry about broader recessionary issues because demand side components.”

Part of that avoidance is traveling. Reed says major cities will take a hit.

Despite not having a local case of Coronavirus, Tamara Cavender says she has had a handful of clients reschedule trips.

“We’ve had some people that were leaving maybe in a month and they have rescheduled to four or five months out,” said Cavender. “[They’re] still planning on doing their trip, but [we’re] just seeing how everything is going to work out.”

She hasn't had anyone cancel, but some traveling to Europe have opted to avoid certain areas. But Cavender says to trust your gut.

“Go with what you feel comfortable with. If you don’t feel comfortable going at this particular time, just check on if you have travel insurance,” said Cavender.

Not all travel insurance will cover the same, so Cavender recommends anyone traveling to call ahead and check.

As concerns over the virus and oil demand fluctuates, Reed expects the stock market to remain volatile. But he urges people to think with a level head and not make rash decisions.