Pottering About
Defenceless Markets?
I was surprised to see that I had already written about the implications of coronavirus a whole month ago. The dramatic market sell off we have seen in recent days reflects the fact that the spread is now accelerating, in terms of locations, even if the case numbers are increasing less in China.
I have commented on numerous occasions since I launched this web site almost 2 years ago that markets were taking a very optimistic view about profits growth and that the emergence of a significant negative factor that would threaten a global recession would see a dramatic set back.
Whilst it has been possible and indeed profitable to ‘ride’ the momentum a little since central banks did their about turn on interest rate policy about a year ago, the advent of an ‘unknown’ could be expected to force an eventual reality check.
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