"Coronavirus Creates Global Economic Uncertainty, Threatens Financial Stability"

In this month’s Municipal Strategy Report we discuss the problem created when unique events create risk that must be discounted and factored into market prices long before the severity or magnitude of the event can be properly gauged.  With the Coronavirus epidemic, markets are discounting a highly subjective appraisal of the likely fallout from the virus without the benefit of many valid historical precedents.  With the birth of the epidemic only about three weeks ago, determination of the impact on China, US, and global economic growth in 2020 must be made without having sufficient data to rule out the more improbable scenarios.

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