China is again battling the spread of a SARS-like coronavirus.
All as a mysterious Wuhan virus is sweeping across Asia, and has already infected more than 300 people with authorities worried it could only get worse. “The outbreak of a SARS-like coronavirus in Wuhan is developing into a major potential economic risk to the Asia-Pacific region now that there is medical evidence of human-to-human transmission,” said Rajiv Biswas, Asia Pacific Chief Economist for IHS Markit, as quoted by CNBC.
The World Health Organization will hold a meeting this week to determine whether to declare the outbreak an international public health emergency.
According to CNN, “Tour agencies have been banned from taking groups out of Wuhan and the number of thermal monitors and screening areas in public spaces will be increased. Traffic police will also conduct spot checks on private vehicles coming in and out of the city to look for live poultry or wild animals, after the virus was linked to a seafood and live animal market.”
Those new measures follow President Xi Jinping’s ordered “resolute orders to curb the spread.”
Unfortunately, there are fears China may have acted too late with millions of folks expected to travel across the country and overseas for the Lunar New Year. That’s only compounding concerns of even bigger spikes in cases.
Reportedly, the virus belongs to the same family of viruses as SARS, which killed nearly 8,100 people around the world during the 2002-03 outbreak that also started in China.
There are two potential ways to trade the situation.
Novavax Inc. (NVAX) and BioCryst Pharmaceuticals (BCRX)
Shares of NVAX and BCRX have been explosive on the mysterious virus plaguing China at the moment. However, until the situation is under control, stocks like NVAX could see higher highs. While we’re not recommending that you risk the house on the stock, we are recommending that you buy on the virus story.