Club Mulgoa

Friday, February 07, 2020

Wuhan coronavirus

Reality is sinking in again...

With Wuhan coronavirus creating havoc around the world, it amazes me that stock markets were functioning like a cure or vaccine is already there and China has contained the illness.

So far, outside of China, very few deaths have occurred and infection rate does not seem to be exploding. I have no idea why; awaiting epidermiologists to advise.

Like a yo-yo, perhaps some form of reality is sinking into fund managers as US markets are falling and price of gold is rising overnight. However, what is intriguing for me is while almost ALL market futures are down, I wonder what is the SPI doing going UP! And we are a Chinese poodle from an economics point of view. Bizarre logic works in the stock investment world!

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