DIARY OF A FUND MANAGER - THE HEART OF THE MATTER- 10.02.20
Coronavirus ripples are spreading out from Wuhan bringing uncertainty to financial markets. This week’s Diary delves a bit deeper into the investment consequences of a genuine unknown.
For most of last week, markets in their collective wisdom seemed to have concluded that the impact of the coronavirus was understood and that the peak in the infection rate was just over the horizon. Accordingly, equities moved higher and safe haven bonds fell back. It was only late on Thursday and then throughout Friday that the news worsened and the rally subsided.