Investors may be overreaching as market hits new highs amid coronavirus outbreak

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Investors may be overreaching as market hits new highs amid coronavirus outbreak
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'It could be a short-term shock but one that ends up having a somewhat longer-term impact,' Cornell University professor Eswar Prasad told CNBC.

, continuing a strong start to the year despite uncertainty around the virus.

"They're seeing the actions that Chinese authorities have put into place to try to contain this spread and they view it as very much a Q1 phenomena," he said. Dryden said he has downgraded his Chinese growth forecasts for 2020 to about 5.3% from 5.8% and his global growth forecasts to 2.3% from 2.5%. But Dryden differed from Prasad in his assessment of how the outbreak could play out throughout the rest of 2020.

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