As the Covid-19 virus has spread, so has the pall its casts over the markets. Since reaching all-time highs on February 19, the major market indices have plunged into bear market territory, and volatility has reached levels not seen in years, with the VIX index trading around 80. The turmoil has sapped the primary equity issuance market and brought the IPO market to a virtual halt. There is a prior case for this situation. From 2002 to 2003, a global outbreak of SARS, a coronavirus related to Covid-19, roiled the equity markets, both primary and secondary.
Given that history, we took a look back at that period for insights about how today’s crisis might play out.



Ashashyou [CC0], from Wikimedia Commons

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