At this early stage, we are not sure whether how severe will the swine flu turns out to be. If it is similar to SARS, then the impact was abt one year of negative stock mkt, and it can be worse too. On the other hand, if it is a passing problem that can be contained, then there will still be a short term impact, not for long or deep.
Given the current economic crisis, the effect can be amplified. As such, I recommend a more cautious approach of sell or hold, and not to buy shares until the swine flu issue becomes clearer. (Except for shares that can benefit from such panic, like companies that produces the flu vaccine or related services, eg. private hospitals that is catering to the patients, in Mexico..etc)
The above is based on my observation during the mad cow disease, where I made money from selling GBP, and also the SARS period. Do not underestimate the panic effect of such case, afterall, 80 has already died in Mexico.
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