Ebola fear factor subsides in U.S. financial markets
By Yasmeen Abutaleb
The market's big losses last week were largely attributed to concerns over global growth and plummeting oil prices. But fears that Ebola could spread in theUnited States after three people in Dallas were diagnosed with the hemorrhagic fever added more than a little froth to the market's recent convulsions.
Several of the stocks that got hit hardest by the fear – including airlines and hotels – bounced back sharply on Monday. Just as notably, several stocks that rode the scare higher, such as hazmat suit maker Lakeland Industries Inc and Tekmira Pharmaceuticals Corp, which is testing a drug to treat the virus, fell by more than 30 percent over the past three sessions after rising over 200 percent.
"Anybody who's buying some sort of panic-related stock paid too much and that's that," Simons said. "You do stupid things; you lose money."
Panic over a possible Ebola outbreak in the United States escalated after a Liberian man became the first person in the United States diagnosed with the virus on Sept. 30. Two of the nurses caring for him, Nina Pham and Amber Vinson, also contracted the virus, and Vinson flew on a commercial flight one day before she was diagnosed.
KEEPING AN EYE ON THE CALENDAR
Shares of Lakeland fell 12 percent on Monday and 37 percent in the past three sessions, following a 248 percent gain in the seven-session period to last Monday.
As more people with possible exposure end their quarantines anxiety over Ebola will "fade into the background in a hurry," said Simons of Rosewood Trading.
"The public has a short memory."