What to Make of the Stock Market’s Reaction to the Coronavirus Outbreak?
President Trump is speaking on TV with his team discussing governmental actions that are in process, the state of testing for the virus and all other matters related to addressing the coronavirus outbreak. After an up day in the market yesterday, it is down again today at this moment. Nobody can predict the market gyrations at this time, but we do know that markets don’t like uncertainty and we do know there is a significant amount of fear and angst being felt by people due to uncertainty in strategy. Policymakers now seem to understand the gravitas of the situation, and, are moving forward with fiscal programs, monetary programs, and health initiatives. We may have to endure the situation for some time and experience the related financial pain, but this too will pass and we need to keep our faith and resolve to remain rational.
I invite you to listen to this special issue of the Fiscal Feminist for more of my insights.