Reply to WHO is pulling all of their money out of the stock market?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]For those saying "this is like everything else, just wait this out a few months and the market will bounce back."

This is the most recent literature about the virus. This is what governors are basing their shut downs on. Read this and then get back to us with your casual attitude about it:

https://www.imperial.ac.uk/media/imperial-college/...9-NPI-modelling-16-03-2020.pdf

The global impact of COVID-19 has been profound, and the public health threat it represents is the most serious seen in a respiratory virus since the 1918 H1N1 influenza pandemic. Here we present the results of epidemiological modelling which has informed policymaking in the UK and other countries in recent weeks. In the absence of a COVID-19 vaccine, we assess the potential role of a number of public health measures – so-called non-pharmaceutical interventions (NPIs) – aimed at reducing contact rates in the population and thereby reducing transmission of the virus. In the results presented here, we apply a previously published microsimulation model to two countries: the UK (Great Britain specifically) and the US. We conclude that the effectiveness of any one intervention in isolation is likely to be limited, requiring multiple interventions to be combined to have a substantial impact on transmission.

675,000 Americans were killed by the Spanish Flu in 1918, when the population was MUCH HIGHER. Be very scared of this.[/quote]

This is not 1918 and most of the figures tossed around are factoring in NO intervention.

Also, 1918 was followed by 10 years of expansion and innovation. And there will be incredible innovation as a result of this pandemic. Everything we are seeing right now - all of these drastic changes to our society - will fuel innovation.

I am not saying this won’t be bad; it will be quite bad. But remember that no governor wants to be the headline for the state that didn’t act. With proper social distancing and self quarantines we can combat this. I know we are really focused on Italy right now, but China’s number are encouraging: 
https://www.worldometers.info/coronavirus/country/china/[/quote]

“It is interesting to contrast the response of the stock market to the Spanish flu in 1919 with the coronavirus in 2020. The Dow Jones Industrial Average fell over 2,000 points in four days out of fear that the coronavirus will continue to spread and impact the global economy. The fear is that cities will become quarantined, supply chains will be broken, world trade will be impacted and growth in the global economy will slow down.

[b]However, the impact of the Spanish Flu on the stock market was minimal. If you look at the Dow Jones Industrial Average in 1918 and 1919, you can see that the stock market was relatively unaffected by any of the three waves of the Spanish flu. Of course, the Spanish flu occurred in 1918 while World War I was raging in Europe so the war had a larger impact on the stock market than the flu. There were few if any global supply chains that the Spanish Flu could disrupt because the war made supply chains nonexistent. The second and worst wave of flu occurred at the end of World War I when peace was finally achieved after four years of devastating destruction. It is interesting that there was little impact on the stock market of World War I ending on November 11, 1918. Perhaps euphoria about the conclusion of the war was offset by concerns about the Spanish flu.[/b]

It is comforting to see that when the final wave of the Spanish flu subsided in February 1919, the market began an increase of 50% which lasted until November of 1919.  Whether this increase occurred because of the end of World War I or the end of the flu or both is impossible to say, but it does provide encouragement that once the coronavirus begins to subside, the market will bounce back once again.”

https://www.globaltrademag.com/the-spanish-flu-and-the-stock-market-the-pandemic-of-1919/

I agree that we will recover but there are some modern factors that will make this pandemic affect economics intensely before a recovery.

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