As The Coronavirus Spreads, Beauty Companies Stocks Are Losing Value. Be Cautious With Your Money
I don’t care if you like being safe or adventurous, know that in these tumultuous times, despite all your measures to be cautious, you’re living on the edge, narrowly escaping all sorts of apocalypses by sheer luck, and definitely not by design. With glaciers melting, forests burning to a crisp, wildlife getting displaced and extinct, we are in the middle of on disaster after another that clearly doesn’t bode well for any of us. This is something that isn’t just limited to the natural disasters and environmental degradation, but also to the kind of diseases and illness that seems to be spreading, rampantly across globe, the latest one being the coronavirus outbreak in China’s Hubei province.
The outbreak that is claiming lives at a pace that is causing alarm with more than a 100 dead, and with a total of 3,554 cases already in process, the news is scary. The outbreak is centered in Wuhan but it has now sparked an international alarm, and for good reason. It’s time we sat up and paid attention. Obviously, this had adversely affected several industries but mainly tourism with many countries asking citizens to cut down on travel to and from China.
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In fact, tourism isn’t the only industries that have taken a hit here. Cosmetics companies also bearing the brunt of this sudden outburst- Chinese tourists are major buyers of cosmetics and other items and the travel slack has hit the sales of these companies. In fact, this has also lead to a drop in the demand of the stocks of these companies. Forbes noted that, “share prices of Amorepacific, the Korean cosmetics giant, fell 8.47% and LG Household & Health Care was down 7.12%. Hanatour Service and Modetour Network dropped by 10.18% and 9.26%, respectively.”
Oppenheimer, an investment firm, downgraded shares of cosmetic company Estée Lauder to ‘perform’ from ‘outperform; on heightened fear about the spreading deadly virus, CNBC reported.
Basically, this isn’t a good time to buy stocks of cosmetics companies. Heck, it isn’t a good time to be alive.
