There is a global plan underway worth trillions of dollars that could help ASX shares coronavirus impacts.
Countries seem to have learned from the GFC because many of them are going hard and fast.
According to the latest numbers being compiled by the NYTimes and Reuters, the governments of the following countries have announced stimulus packages:
Australia – Yesterday's $130 billion package to subsidise wages, $66.1 billion for companies & additional welfare payments and $17.6 billion in subsidies for apprentices, small businesses, pensioners and others.
US – The country has passed a US$2.2 trillion package to help companies, households and other areas.
Germany – A package worth up to €750 billion to support troubled businesses, providing loan guarantees at risk of default and so on.
France – €45 billion in support for companies and workers, as well as guaranteeing up to €300 billion of corporate borrowing.
Italy – €25 billion of support for the economy.
Spain – €200 billion for things like state-backed credit guarantees for companies, loans and help for vulnerable people.
UK – £330 billion in loan guarantees for businesses as well as providing up to 80% of wages if staff are placed on leave for up to £2,500 a month.
And so on – Canada, Japan, China, South Korea, Brazil, India and South Korea.
The total global support now adds up to many trillions of dollars around the world. It's a global plan to support the global economy, of which ASX shares are an important part. That's no guarantee that the S&P/ASX 200 Index (ASX: XJO) will quickly recover the 30% that has been lost, but it'll help avoid even heavier share falls.
It shows that governments across the world are willing to do what it takes to help their country get through this period and hopefully do well on the other side.
Don't forget that global interest rates have gone to almost 0% in many countries and central banks are doing their own support initiatives too.
There are plenty of shares that have been heavily hit that could deliver excellent returns over the next few years. I say "years" because I'm not sure we've seen the last of the falls in 2020, particularly if there's a second wave of infections.
