A reasonably balanced column worth reading:
https://www.theatlantic.com/business/archive/2020/02/coronavirus-stock-market/607216/
Sylla’s view of all this as a financial historian is pretty zen. “I wouldn’t pay much attention to the day-to-day reports of the newspapers—‘Here’s a good sign,’ ‘Here’s a bad sign,’” he said. In the short run, the stock market isn’t necessarily a good predictor of how bad the pandemic will get, in part because investors are working off the same scant information as everyone else. “What I would say history shows you is that a problem like this takes many months and maybe even a couple of years to play itself out,” he said. But, he went on, “Wall Street’s idea of history is the last 10 minutes.”
https://www.theatlantic.com/business/archive/2020/02/coronavirus-stock-market/607216/
Sylla’s view of all this as a financial historian is pretty zen. “I wouldn’t pay much attention to the day-to-day reports of the newspapers—‘Here’s a good sign,’ ‘Here’s a bad sign,’” he said. In the short run, the stock market isn’t necessarily a good predictor of how bad the pandemic will get, in part because investors are working off the same scant information as everyone else. “What I would say history shows you is that a problem like this takes many months and maybe even a couple of years to play itself out,” he said. But, he went on, “Wall Street’s idea of history is the last 10 minutes.”
