Monday, August 17, 2009

The H1N1 virus, better known as swine flu, is affecting more than just the health of the nation. The outbreak has instilled fears in

the minds of the general public and people are reluctant to venture out of their homes. This has affected the business at large and in

a cascade effect, the swine-flu outbreak has initiated fears that an economic recovery could be delayed if the virus spreads at the

current rate.
As governments are announcing travel advisories and recommending people to stay indoors, transportation stocks might take a hit. This

in turn will prove disastrous for the cruise, hotel and airline industries. Also, the drop in travel could cause a weak overall demand

for energy and crude oil.
However, it could have a positive effect on sectors such as pharmaceuticals and related healthcare companies, as the demand for

vaccines and health services are on the rise.
The health hazards combined with the fanatic media coverage could dent the markets in the short run.

Ganesh


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