As if investors didn't have enough to worry about, concerns about another flu pandemic - swine flu in this case - are now causing concerns globally following deaths in Mexico and it's spreading to various parts of the world. Global sharemarkets have been rattled by concerns about its economic impact. While a flu pandemic - were it to eventuate - would first and foremost be a human tragedy, the economic and financial market impact would also be significant.This article looks at the risks.
The key points are as follows.
- Swine flu deaths in Mexico and the spread of cases around the world have lead to fears of a global flu pandemic.
- Coming at a time when the global economy is already weakened, pandemic fears have already caused nervousness in sharemarkets and more weakness is possible.
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While there is reason for concern, the experience with SARS and bird flu highlight that worst case pandemic fears don't usually come to pass. The world is also better prepared for a viral pandemic now. The key for investors is to be alert, but not alarmed.


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