The Diffusion of COVID-19
Figuring out the long term consequences of the new Coronavirus (aka COVID-19) is rather hard at the moment and the capital markets reacted in a drastic way last week. Therefore, it was remarkable for us to see that our AI models suggested: “Do nothing”. When we analysed the market movements through the scientific and objective lense of our models, we could show (or “prove” but that might be too strong) that there was very little indication that the reason for the downturn was anything other than “uninformed” panic.
In our opinion we face two possible scenarios: containment or co-existence. Keeping in mind these two roads, it will be interesting to observe how they will unfold in the next few weeks.