While the Coronavirus situation in Europe is going from bad to worse, we’re certainly not seeing run for the hills-like moves in markets. Governments banning all the fun stuff with rules and social distancing isn’t resulting in a collapse in output this time. And investors seem to think even during the dark days of winter the economy will get through relatively well – stalling, not plunging growth. The thinking is that as long as fatalities remain at manageable levels, there will be no repeat of the March/April collapse in output.

 

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