Stock Strategist: Coronavirus' Effect on the Financial Sector

[Morningstar Logo]( [Company Site]( [Company News]( [Membership]( [Portfolio]( [Stocks]( [Options]( [Funds]( [ETFs]( [Markets]( [Tools]( [Personal Finance]( [Discuss]( Stock Strategist Coronavirus' Effect on the Financial Sector Volatility isn't always bad, and banks are better off now than they were in the financial crisis. [tab_bar] by Greggory Warren, CFA | 3/27/2020 1:00:00 PM Not many companies in the financial sector are immune to the coronavirus, but financial exchanges and data companies should be relatively stable. Market data is an essential purchase for many financial services companies, and higher market volatility should boost trading activity in equities and derivatives. The long-term impact is more difficult to assess, as a prolonged bear market may reduce investors’ risk appetite for an uncertain duration; turnover and liquidity may remain low despite a market recovery. The benefit to other companies with material trading revenue, such as investment banks and retail brokerages, will probably be more than offset by a decline in other portions of their business. To read more, click [here](. Sponsored Links [Buy a Link Now]( Podcast: Investing Insights From Morningstar.com Listen to a roundup of the latest videos featured on Morningstar.com [in this podcast]( available through iTunes. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio](. Search Most Recent Articles [How to Assess Your Cash Flows and Create a Budget]( [What Drives ETFs' Premiums and Discounts?]( [Congress to Help Retirees Cope With Market Downturn]( Latest Analyst Reports [Williams Companies]( [Entergy]( [Mastercard]( [Visa]( [Alliant Energy]( ABOUT OUR EMAIL TO UNSUBSCRIBE this email address to the Stock Strategist newsletter, please click "reply" and then click "send." This will unsubscribe only this email address to this specific newsletter. All subscription changes will take effect within one business day. Replies are not read by individuals, so please do not use this for queries about Morningstar.com. If you have questions about Morningstar.com or your membership, send a note to [joe@morningstar.com](mailto:%20joe@morningstar.com). ABOUT OUR PRIVACY POLICY Please [click here]( to learn about Morningstar's privacy policy. (c) Copyright 2020. Morningstar, Inc. 22 West Washington Chicago, Illinois, 60602 All rights reserved.