Market tumble on virus fears may turn out to be “buying opportunity”

Markets took a beating on Monday, with the S&P 500 falling 1.6 percent and the STOXX Europe 600 and Nikkei 225 both plunging around 2 percent.

Markets sold off on concerns that the coronavirus outbreak in China will have a significant impact on the economy.

However, Robert Pavlik, chief market strategist at SlateStone Wealth, said that the selling “is going to turn out to be an overreaction”.

Indeed, a JPMorgan team led by Mislav Matejka wrote on Monday that past outbreaks served as “buying opportunities, rather than the reasons for sustained selling”.