Equity market bloodbath

20.04.2020
At the beginning of March, it had become increasingly clear that COVID-19 was turning into a pandemic and that author-ities would have to resort to very comprehensive measures to contain the virus and control its spread so that hospitals would not be overwhelmed.

The examples of China, Italy (and now also Spain) are scaring equity investors.

Unfortunately, March showed that experience of virus outbreaks did not give a reliable indication of equity market performance. As previously mentioned, authorities have, over the past half century, been able to contain epidemics before they turned into pandemics with a devastating impact on the global economy.

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