Pedestrians in Milan, Italy, where the coronavirus is spreading. (Photo: Francesca Volpi/Bloomberg)

As the coronavirus has spread more widely out of China, investors have taken note. At the market open on Monday, the three major U.S. stock benchmarks slumped 3 percent lower. Meanwhile, U.S. bond yields are plunging, with the 10-year note at 1.36 percent, its lowest yield since 2016, and the 30-year Treasury at 1.82 percent, a record low.

And the long-term impact of the virus may be greater than thought, Bob Browne, chief investment officer of Northern Trust, told ThinkAdvisor. "We think it's premature to assume [the virus] is a blip" in global markets, he said.

He explained that some geopolitical events, such as the U.S. assassination of the Iranian general Qasem Soleimani, can pass through the public view quickly, especially when starting with a sound economy and bullish market. "But [the virus] is different because it's affecting the second-largest economy in the world," he says. This means it's affecting global tourism, which is 10 percent of the world's gross domestic product (GDP). Downstream, that affects casinos, airlines, and cruise ships, as well as suppliers.