The Economic Impact of Covid-19 on Investment Strategies and Related Government’s Measures

Abstract

COVID-19 spread globally in 2020, with confirmed cases still increasing in many countries. Human investment activities also suffer when life, health, and safety are at great risk. The outbreak of the virus has also caused a huge impact on the economy, global financial markets have seen great turbulence, the US stock index even had an unprecedented three circuit breakers. The impact on the global economy of even rare but potentially fatal "black swan events" cannot be accurately assessed. Faced with such a severe epidemic, people tried to find ways to hedge their risks in various ways. Based on the analysis of various industries and the safe-haven assets, some solutions were found to gain profits from the epidemic by shorting the stocks of the affected industries. The government offering the release of some protection and welfare measures, the economic loss can also be redeemed to a certain extent.