Pandemic Panic Is Natural, But Try to Resist It
Adjusting for a weaker yuan and slower Chinese growth makes sense, but doing more when the risks aren't fully known is pointless.
The deadly new coronavirus is spreading around the globe.
Photographer: Kevin Frayer/Getty Images
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January is not yet over, and already 2020 has confronted investors with two black swans. First there was the brief intensification of the conflict between the U.S. and Iran, which quickly ramped back down — although it would be unwise to bet too much that it will stay that way indefinitely. And now there is the coronavirus epidemic in China, which in the space of a week has spread from Wuhan and imprinted itself on the world’s consciousness, while bringing much of China to a standstill when it would usually be celebrating the Lunar New Year.