FMCQF - Second-Order Effects Of The Coronavirus Panic
Second-order effects
Every action has a consequence, and each consequence has another consequence. These are called second-order effects.
While the dramatic coronavirus outbreak in China was already known, analysts and investors were staring at the daily increases of confirmed cases, and, as soon as they noted a slow-down, U.S. stock markets reached all-time highs. – What does this tell us? – Well, the uncomfortable truth for data-driven, math-focused, chart-steering folks like us, is that looking at figures alone can make you blind: Effectively, in the meantime, the obvious happened, as single infected travelers brought the