The impact of coronavirus across industry and finance

Clark Howard Show
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Automatic TRANSCRIPT

The news around the world is about the unknowns that we face from their corona virus and something that is one of those things that creates and some people like a visceral fear and others. It's like You know I'm not worried about that. And I wanted to address both angles on that with practical things that I'd like you to be aware of as to whether whether or not this is going to become a threat to life and safety in the United States in fact in the whole Western Hemisphere hard to know. Oh if that's going to happen and odds are that this will be. Even though they're isolated cases that have been found around the world that odds favor that this will not spread heavily in the United States and Canada but but that's just based on historical experience that people work in public health habit. They're always always extra vigilant extra concern. One industry is facing a lot of questions from travelers and end. That's cruise lines airlines anything to do with the travel industry is. It's almost like an hour by hour thing. A bunch cruise lines have cancelled sailings. They were going to sail specifically into China and peripherally to China because if you imagine a cruise ship the close quarters people are in someone comes on as a carrier of the corona virus where it tends tends to be No symptoms for up to two weeks that somebody's contagious. That could be absolutely a hideous situation. So the cruise lines sail in that part of the world which is pretty much. All the major ones are for now canning cruises that would've would've departed from areas close to the affected regions in China. And that is part of what you do anytime anytime. There's a potential for an epidemic is you isolate and I know because we've already had people posting questions Ashton's about what do they do about their travel and a number of airlines have come up with very good policies. He's on how to accommodate people who were flying to China or certain other spots in Asia and are offering people the option of getting a refund so far our our three full fare airlines in the United States that offer service to Asia American united and Delta have not done so their policies are confusing. They are not customer friendly and they are not protective of public health. And I think about how we need because these situations can arise we need some form of system and if necessary law aw that requires during a situation. That's a threat to public health. That people should have the right to cancel travel with a full refund but that is not the deal in the United States now and American united and Delta may come to their senses because think of what happens to them long term if they become a source of what brings corona virus into widespread You know a widespread kinda breakout in the United States. So it's really dumb to tell people they have to fly or they lose their money on that case though. There's something I want you to think about with travel. You may book for Spring Summer. Fall two places far afield because we don't know the extent of this where it may go if it's something that just peters out pretty quickly or becomes a greater global concern. There is an obscure kind of travel insurance. You can buy that you pay more for than traditional travel insurance but it allows house you to cancel for any reason so he doesn't have to be covered reason. Travel Insurance providers aren't gonNA say. Oh well you know you're going to. You're going to Bangkok so we're not concerned about that. Even if you're concerned about going to Bangkok or you're concerned about going to Tokyo or whatever we don't care that's not a covered reason if you buy a policy that says you can cancel for any reason your okay and you don't get back all your money. Typically Ali with cancel for any reason policy. You get back three quarters of your money which would be something that people might be willing to walk away from a quarter. If they're gonNA have no fun or worry on a trip they were planning to take stock market. The stock market here here in the United States and overseas has reacted badly to this. And that's because investors never like uncertainty. Obviously any any travel company or any company that does business heavily in Asia is going to be affected by the market a lot of. US restaurant chains have big presence presence in Asia. They're going to be affected. A lot of manufacturers will be affected and so is unclear what the long term arm implications are for the stock market but stock values in the ice as have been very very hefty and and little high by historical numbers. And this could be a time that people take an excuse to take a breather. And you could see a Little bit of a nick to your values in your 401k or other things but there's nothing about this says run for the hills with your investing and I just want you to know that that we don't know yet how this is all GonNa play obviously but eventually like all the other things we feared like Ebola and SARS and all that eventually public health people get it under control and the tragedy for people who suffer from it and family members who lose loved ones but in terms of the overall economic performance here and overseas. It is a temporary effect Oil prices which you pay to put gasoline in your vehicle lower diesel in your vehicle. You're going to see those prices depressed. At least for a good while by the effects of this on one how much travel people do which reduces the overall demand for fuel and as the demand falls the supply arises and it lowers the price for you and one other thing I want to mention is something that I may sound ridiculous to you. But it's something I believe in so we and our home have as I mentioned before a small amount of cash because of all the methods of payment were be hacked or anything like that having cash ashby valuable. We don't have enough. It's worth anybody trying to break into our house but we have enough cash to cover several days of spending if if we needed it and we also have a good supply of water in the event that we had to stay at home and we also have a good supply of non perishable food and taking precautions like that for so many different reasons could be a storm could be a a terrorist attack. Could be an illness spreading something I that I think you should be prepared. And these are simple simple precautions that I think just make good common sense.

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