This column comes to you from Tokyo in early February. There’s a cool chill in the air and, many fear, perhaps something worse: the deadly, novel coronavirus. Early cases were linked to a seafood and animal market in the city of Wuhan, China. Japan has reported its 20th case of the virus as I write, and it’s on the minds and lips of many people in public places.
After shrugging off news of the virus early in the outbreak, financial markets began responding more noticeably in the final week of January.
The copper price, a traditional signal of global economic health, pulled back more than 10%. The world’s major share markets turned down and individual stocks began reacting strongly, for better and worse.
Some say this will merely be a blip and that those selling today will regret it.
Others are calculating the potentially major costs of disruption to the flow of people and products between Australia and China. Some are going even further in imagining the virus turning into a global pandemic and potentially mutating further. One well-followed Twitter account was suspended after countenancing the view that the virus may have been a biological weapon that either unintentionally or otherwise emanated from the Wuhan Institute of Virology.
Time will tell but, for investors, the truth is most likely to end up somewhere in the middle. Many investors seem overly concerned with being publicly “right” about their views on this outbreak. They want to be on record early with their predictions that it will either blow over quickly or become a more significant issue.
I’m in neither camp. “There are two types of people: those who try to win and those who try to win arguments,” wrote Nassim Taleb, the successful author, and former trader. “They are never the same.”
Diese Geschichte stammt aus der March 2020-Ausgabe von Money Magazine Australia.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der March 2020-Ausgabe von Money Magazine Australia.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Is the public market shrinking?
Australia needs a healthy stock market to give companies access to funds and to allow retail investors to build wealth.
India: three steps to transformation
Massive investment and extensive reforms turbocharge the economy.
The ballet of business
Changing direction, products, models and marketing is a hard task for a business. We chart what it takes to turn a business around, plus profile four successful pivots.
Save money and the planet
Could the high cost of living give us the incentive we need to reduce how much water and energy we use or waste? These eco-friendly household tips will help you do just that.
AI adoption is the new black
Artificial intelligence is set to reshape the commercial world, and small enterprises can’t afford to miss the boat.
Spam attack! Murky laws jam our inboxes
Unwanted marketing material is one of the pain points of modern life.
From rags to riches in style
Rich Tran sported a bowl cut until he was 14 years old and had no intention of becoming a hairdresser.
New work deals are killing the 'old' office
The Covid pandemic and the subsequent lockdowns accelerated the trend to more people working from home. It was a mixed experience.
Points taken: the truth about rewards
Can hopping between credit cards really boost your frequent flyer haul and give you cheap or free travel - or is it doing more harm than good behind the scenes? Money puts it to the test.
Shortcuts to own a home
Innovative ideas with a focus on low costs and sustainability could help solve the housing crunch.