Different types of panic

Markets are likely to remain volatile as the lag between actual COVID-19 infections and the reporting of cases continues to push the virus further into the global economy. The ultimate deadliness of the disease is almost a secondary factor; sentiment is being driven by fear. That is what differentiates this shock from other risk events we’ve weathered since the financial crisis. While logically you might find that more people die from air pollution and the normal seasonal flu outbreaks, these lack the primal fear factor that COVID-19 brings with it. That generates both demand and supply shocks which compound many of the global economy’s existing problems.

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